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Small fashion companies may not survive April in lockdown

By Don-Alvin Adegeest

Apr 2, 2020


The next few weeks are crucial for small and medium-sized fashion companies, who must carefully budget cashflow. Many may not survive.

Research published by the BBC says nearly 20 percent of all SME’s are unlikely to get the cash they need to survive the month of April, despite government-backed proposals for support.

The figures came from a network of accountants which suggests between 800,000 and a million firms across the UK may soon have to close. Many firms have told the BBC that banks have refused them emergency loans.

The figures identifying how many businesses would not be able to access cash come from a network of accountants serving more than 12,000 small and medium-sized businesses across the country called the Corporate Finance Network.

After analysing the government help on offer, those accountants say that 18 percent of their clients were unlikely to get access to the cash they will need to survive a four-week lockdown.

Image via Pexels; Article source: BBC