Charity recycling business saves jobs during retail shutdown, with support from Lloyds Bank

A recycling business that helps charity shops make the most of their donations has been able to safeguard jobs while UK high streets are in lockdown, with support from Lloyds Bank.

West London’s Choice Textile both recycles and sells charity shops’ unsold stock, helping some of the UK’s biggest third sector organisations raise money for the causes they support and avoid sending items in good condition, including clothing and books, to landfill.

The business’ primary source of income was cut off when its charity shop partners across the UK were asked to close as part of the government’s COVID-19 lockdown. Choice Textile paused trading in response and made the decision to furlough the majority of its full-time staff.

Facing increased pressure on cashflow, managing director Aloysius Ihezie turned to longstanding banking partner Lloyds Bank for support to maintain Choice Textile’s strong financial position during a period of unprecedented disruption.

Just 24 hours later, Lloyds Bank had arranged a capital repayment holiday on Choice Textiles’ existing borrowing. The support strengthened the business’ working capital position, allowing it to keep supporting its charity partners and cover staff wages until the Government’s Coronavirus Job Retention Scheme goes live in May.

Choice Textile, an active long-term member of the Charity Retail Association, works with clients including Oxfam, Barnardos, the Salvation Army. Every year the business helps its partners raise over £3m for the causes they support.

Choice Textile also runs its own charity, Ihezie Foundation, which donates books to local primary schools. Last year it donated 120,000 books to schools across the UK.

Aloysius Ihezie said: “We were relieved when the government announced the Coronavirus Job Retention Scheme. We’d be able to retain and support our wonderful team until our biggest customers reopen their doors.

“However, paying staff salaries until the scheme begins created pressure on our cashflow. Within hours, Lloyds Bank provided us with a solution and I’m happy we can continue to look after our clients and staff.

“The support also means we can continue with our agreements to our charity partners, providing them with much needed revenue during this difficult time. We’re looking forward to getting back to work helping them reduce their environmental footprint and raise money for worthwhile causes.”

Brendon Shanahan, relationship director at Lloyds Bank Commercial Banking, added: “Choice Textile’s services were in good demand before we entered lockdown with a strong customer base including household-name brands”.

“We’re working round the clock to help otherwise successful firms like Choice Textile navigate the unprecedented disruption caused by COVID-19. This includes setting aside £2bn of arrangement fee-free finance for those directly affected by the pandemic.”

CBILS support allows accountancy firm to maintain ‘business as usual’ service

An accountancy firm in Barnstaple has been able to maintain its day-to-day operations during the coronavirus outbreak and is continuing to support its clients after securing a Coronavirus Business Interruption Loan (CBIL) from Lloyds Bank.

LCA Services, which is based just off the High Street in Barnstaple town centre and was established more than thirty years ago, provides accountancy and taxation support to more than 300 clients across the South West, including SMEs and private clients. The business is providing extensive advice to many of its clients on how to manage the financial impact of the crisis, without making any additional charges.

The firm’s primary services include business tax returns for sole traders, payroll services, as well as managing annual accounts requirements. The impact of the lockdown on many of its clients and the firm’s own cash flow has been immediate.

The business secured a £50,000 funding package from Lloyds Bank using the CBIL scheme, which includes a loan repayment holiday for the next six months, that will be used to support the cashflow of the business through unprecedented times of the coronavirus outbreak. It will enable LCA Services to pay eight employee salaries until the government’s furlough support wages come into force later in April, whilst also maintaining its ongoing client services.

The CBIL scheme provides funding for smaller businesses that are experiencing lost or deferred income as a result of coronavirus.

Rob Tickell, sole owner and director at LCA Services said: “This funding presents a lifeline to clients of my business as it provides me with breathing space in managing my working capital and mitigates the impact of short-term losses at the most critical time over the coming months. This gives me the headspace and reassurance to perform better at work to the benefit of all our clients, during what is a very intense period for small business owners.

“The support we’ve received from Lloyds Bank has been outstanding. I found the whole process straightforward and quick – my application was approved within just three days of being submitted, and the team really understood my business needs. Their guidance in submitting my funding proposal was much appreciated and all helped to make it a smooth process.

“What’s more, it’s been useful to go through this process with Lloyds Bank for my own firm initially, as I am supporting many of my clients in their own funding applications. The success and ease of navigating the process with Lloyds Bank has been very reassuring.”

Stephanie Knight, business banking manager for Lloyds Bank said: “LCA Services is a prosperous and healthy business that provides an excellent service to its customers right across the South West. But like so many other small businesses at the moment, they’ve encountered obvious difficulties as a result of the coronavirus outbreak.

“These are unprecedented times and we’re working closely with our customers to offer support in managing their cash flow. This includes arrangement fee free overdrafts, capital repayment holidays on loans for businesses that have been severely affected, and the Coronavirus Business Loan Interruption Scheme to ensure the continued provision of finance to UK businesses.”