A study states that only 27% of 9000 SMEs in the UK have prepared financial forecasts as a result of the Covid-19 outbreak while the other state concerns over their going concern status. Tax payments, liability settlements, operating expenses mainly concerning labour are growing issues for SMEs.
With debt being one of the major setbacks, even bounce back loans, that have a cap on 50,000 pounds is not sufficient financing for these organisations to cope in these times of financial and economic distress.
I believe it is time for the Market giants to step in, and lend hands to their clients and suppliers to push them to retain their entities as far as intact they can be to continue doing business and keep the cycle running.
These are times when companies are laying off their workers, cutting costs as much as possible due to reduced or zero demand in the market. Say, The automobile industry in Pakistan recorded 0 sales in April, with warnings of laying off 20% of their workers in his pandemic. Toyota Indus Motors, despite losing 52% of the revenue in this pandemic has announced an interest-free loan package for their suppliers and dealers, mainly SMEs while retaining their employees!
While calls by SMEs for financial support remain unanswered, IMC has established fair and heroic grounds to be announcing such relieving loans to organisations in financial distress.
It is not only generating goodwill and the cycle for such SMEs running but also, an example to IMC’s competitors that people you do business with, are the ones that keep you going.