COVID-19 has caused challenges to businesses across the country. Entrepreneurs are under pressure to sustain their businesses and employees. They are trying to spot new opportunities and ways to deliver their services and products.
The Process of Change
New companies are emerging and thriving due to the pandemic, while other companies are reviving themselves. According to David Azzato, it is time to rethink what you already know. As more people want to be safe, their needs vary. It’s time you start selling products and offering services you haven’t before. You must accept that times have changed and try to turn things around.
If you are open-minded, you will also realize good things coming from the pandemic. You must be willing to take a leap of faith. Although the opportunities might not be visible at first, they’re still there. The goal is to notice what is happening and making changes. Ensure you do enough research before committing to a new business.
How the UK Government is Helping Entrepreneurs
The UK government has come up with strategies to help the affected businesses. As the nation comes from a lockdown, ministers are planning how to support entrepreneurs. The support is available to entrepreneurs for both open and closed businesses. One of the major contributors is the Coronavirus Business Interruption Loan Scheme (BILS).
According to David Azzato, the loan application will be open until January of 2021. Coronavirus Job Retention Scheme is put in place to help the businesses pay their employees. To access this loan, you must be a UK-based business impacted by COVID-19.
Businesses can access different loans depending on their needs. They include a term loan, overdrafts, asset finance, and invoice finance loans. For the term loans, the business will make regular payments for a set period. Overdrafts are to offer credit to bust the business’s short-term flow of cash.
A business can spread the cost of new purchases using the asset finance loan. Lastly, an invoice finance loan helps cover what the customer owes the business in a short period. Although the schemes are great, businesses relying on dividends for partial and sole income have no support yet.
David Azzato notes that businesses that rely on passive income are side-lined. Although directors and entrepreneurs have paid taxes on dividends, they haven’t received any support. According to the treasury, they cannot differentiate dividends from passive investments from those paid out while working.
The good news is a scheme is being put together for these entrepreneurs. It will operate similarly to the Self-Employed Income Support Scheme (SEISS). For a director to qualify, they must have a reduction in services demand due to COVID-19. They should be temporarily unable to trade due to corona virus or still actively trading. Read: https://davidazzato.medium.com/