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April 6, 2020

Cash transactions in China to see negative growth

China is the epicenter of the coronavirus (Covid-19) pandemic and its impact on the country’s payments industry is that cash transactions will see significant decline while card payments continue to grow over the next four years, according to GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Covid-19 Impact on the Payments Industry: China Forecast Snapshot’, predicts the growth rate for the value of cash transactions before and after the pandemic to drop from a compound annual growth rate (CAGR) of 5.0% to -4.3%, between 2019 and 2023.

The shift in annual decline is already being seen due to a rise in online shopping and larger food orders for stockpiling. Similarly, contactless payments are much safer than cash ones in the current climate and the World Health Organisation (WHO) urged consumers to use cards.

GlobalData forecasts the value of card transactions to rise in China up to 2023, but the post-Covid-19 amended forecasts see a CAGR drop to 10.0% from 11.8% (2019-23f).

Ravi Sharma, banking and payments analyst at GlobalData, comments: “GlobalData has revised its forecasts for payment card transactions value and volume data for the next five years, anticipating a steep reduction in projected growth for 2020, which will ultimately recover but not to previously forecast levels. This is due to the impact in the short to medium term of what is looking likely to be a global economic recession.”
The most severe drop in cash payments is set to be in 2020, where GlobalData forecasts it to drop by CNY3.2tr.

Sharma concludes: “This huge change will see consumers become more comfortable with a range of digital transactions, including online, card and even mobile payments. It is likely to shift consumer behavior so that even when cash payments are safe again they will continue to see gradual decline in value and volume.”

April 6, 2020

Small businesses encouraged to get ahead on self-assessments

As the new tax year gets underway, Informi, the website offering free practical advice and support for small businesses, is calling on those who can to consider submitting their 2019/20 tax returns at the earliest opportunity – and get a head start for the new decade.

Figures obtained exclusively by Informi from HM Revenue & Customs (HMRC) show that almost five million people completed their 2018/19 tax returns online in January 2020 – 45.6% of the overall total – with a further 177,745 submitting theirs in February after the deadline, triggering an automatic fine. In contrast, just 4.6% of tax returns were submitted online in April 2019, despite this being the period when people are more likely to have all the necessary paperwork together to submit their details for the previous tax year.Aside from January, the next most popular months to complete tax returns were December, November and July.

 

MonthNumber of tax returns submitted (2018-19 tax year)Percentage of annual total
Apr-19 (from 6 April 2019)489,9204.6%
May-19556,1925.3%
Jun-19548,5285.2%
Jul-19648,6006.1%
Aug-19486,7504.6%
Sep-19512,3624.9%
Oct-19633,1976.0%
Nov-19748,2187.1%
Dec-191,006,7299.6%
Jan-204,820,04645.6%
Feb-20117,7451.1%

 
Steven Drew, spokesperson for Informi, said:

“We know that many people required to submit their tax returns will be battling to keep financially afloat during the ongoing coronavirus (Covid-19) pandemic. Obviously, the priority should be for them to ensure they manage their finances as well as possible at this time.

“However, as we have seen with the use of the past three years’ tax returns to help determine the size of support grants for those who are self-employed during the crisis, returns are of critical importance to the Treasury. Therefore, we would encourage those who can do so to submit their 2019/20 tax return as early as possible. As well as having the advantage of doing so during a typically quieter period at HMRC, potentially speeding up the process, they’re also more likely to have all the necessary information on hand and will allow themselves more time to deal with any problems – and avoiding potentially crippling fines.”

Tax returns for SME owners
Many small business owners will naturally feel ill-equipped at this time to submit their tax returns. Lack of financial expertise and qualified finance staff costs UK SMEs the equivalent of £2.9 billion due to issues such as tax miscalculations and unpaid invoices, whilst the Federation of Small Businesses estimates 37% of small businesses have run into cash flow difficulties caused by late payments. Meanwhile, according to feedback from business owners, businesses may also struggle due to issues with budgeting.

To help small business owners address these concerns and enable them to submit their 2019/20 tax returns as early as possible, Informi is encouraging them to take one of the new AAT Essentials online courses, which have been developed with the Skills Network, one of the UK’s biggest online learning providers. The suite of bite-size courses aims to help students improve their understanding of key financial processes, and cover topics including cash flow management, budgeting, and finance for non-finance managers.

Steven Drew added:

“Even for those who are prepared well in advance, submitting your tax return can often seem like a difficult and daunting process, however long you’ve been running a small business. The new online courses will help small businesses owners to tackle their tax return with confidence and develop the financial skills they need to enable their business to not only survive, but thrive, and all small business owners should strongly consider taking them.”

April 6, 2020

Mettle by NatWest offers FreeAgent free of charge

Mettle, NatWest’s free standalone digital business account, has announced that FreeAgent, the cloud based accountancy software for small businesses, is available free of charge for its customers. Businesses who sign up to link their Mettle and FreeAgent accounts will save at least £150 a year – the minimum cost of an annual FreeAgent subscription.

New and existing customers of Mettle can now sign up to FreeAgent directly through the Mettle app free of charge in a matter of seconds, with transactions also being shared between the two apps immediately, using API (application protocol interface) technology.

This feature ensures all transactions are synced in real time, helping reduce the chance of admin errors or duplication, and allowing both providers to provide helpful tips, so that business owners can focus on growing their business.

FreeAgent’s standard pricing is between £150 to £260 annually, depending on the size of business, but through the partnership businesses signing up for Mettle won’t be charged for a FreeAgent subscription, for as long as they hold an active Mettle account and make at least one transaction a month.

Ed Molyneux, CEO, FreeAgent said: “We’re really excited to be working with Mettle and providing small business customers with the most intuitive way of staying on top of their finances. With faster data flow and greater visibility over business accounts – not to mention the fact that FreeAgent will be completely free to Mettle customers – we believe it’s the best offer on the market for the UK’s five million small business owners and self-employed workers.”

Ken Johnstone, chief product officer, Mettle by NatWest said: “We’re thrilled to be launching an innovative partnership with FreeAgent that will not only allow businesses to have greater insight and control over how they run their business but will do so completely free of charge. FreeAgent share our passion for making it simpler to run a business, and by joining forces we now have one of the most compelling financial packages for small businesses in the UK.”

NatWest intends to build on this new partnership between Mettle and FreeAgent to provide sole trader, freelance and small businesses with simple, innovative solutions that help businesses start and grow with ease. The partnership comes weeks after NatWest announced revised aspirations to help 50,000 new UK based businesses start by 2023, alongside helping 500,000 people become an entrepreneur.

With both products being offered free of charge, the offer complements NatWest’s wider programme of specific support for small businesses during the coronavirus outbreak, including a package of £5bn of working capital support for business who need urgent access to funding during this uncertain period.

The bank is also participating in the government’s Coronavirus Business Interruption Scheme (CBILS) and has opened the scheme up to more business customers by offering loans from £5,000, available to sole traders and partnerships as well as limited companies.

April 3, 2020

Cash in transit company plans to have Pivotal role in business payments

One of the UK’s leading cash in transit companies is changing its name as it plans to scale up its business and become the first in the industry to offer merchant services.

RMS Group is rebranding as Pivotal to reflect its mission to be the leading independent provider supporting cash and card transactions of all types.

The company is also pressing ahead with its plans to open new cash centres in the South East, South West, Yorkshire and Scotland as part of its growth strategy.

Founded in 2005, Pivotal is now the market leader across Ireland with a fast-growing presence throughout Britain. The company – which provides cash collections, deliveries and ATM services – serves over 1,700 customers ranging from Metro Bank and Travelex to retailers and small businesses.

Pivotal is seen as a ‘challenger brand’ offering a customer-friendly, cost-effective service and an innovative approach.

It plans to extend its services to include on-demand collections and deliveries, and also provide card terminals and process card and BACS payments, enabling it to offer a complete service to support all of a company’s transactions and provide one single report.

Tony McAleenan, the company’s managing director, said: “We have always been innovators in the industry and the change of our name to Pivotal marks a step change for our company which will enable us to offer an even better service to our clients.

“While the current situation is challenging for everyone, as an agile business without the burden of a large infrastructure and cost base, we are in a strong position and are pressing ahead with our growth plans.

“Looking to the future, Pivotal will play a key role in helping businesses to manage the increasingly wide range of payment options while continuing to support access to cash, which is vital to ensure we can deal with a wide range of payment methods, and ensure that there is customer choice and financial inclusion within the wider community.”

Martin Smith, head of commercial strategy, added: “We appreciate this is a very difficult time for many of our customers and we are doing all we can to support them, for example by offering one-off collections from premises which have closed.“

“These latest changes will allow us to play a more central role in supporting our clients in the future. Pivotal will make it cheaper and easier for businesses to accept both card and cash payments. For the first time they will also have one single service to support all of their payment needs, allowing them to streamline their processes and benefit from simpler, faster reporting.”

April 3, 2020

Savills Global Market Sentiment Survey

In less than a month, the property market disruption caused by the Covid-19 pandemic has reached almost every corner of the globe. Occupiers, dramatically adjusting their behaviour to new ways of living and working have altered market fundamentals. Investors have paused to take stock of conditions and deal volumes have fallen.

Not all sectors and geographies have been impacted equally though, and the market is already planning ahead to recovery. Here we provide a snapshot of current market conditions across all sectors and geographies based on our survey of Savills research heads in 24 global markets.

Capital markets

Transactional activity has been one of the most immediate casualties of the disruption caused by Covid-19. Buyers and sellers are taking stock and awaiting greater market clarity. Falls in transaction volumes were reported across 62% of all real estate sectors globally. However, there are transactions happening, particularly those that were in progress before the pandemic took hold.

In the office market, the largest real estate sector, a moderate fall in office transactions has been the most common result, reported in 45% of countries. This is followed by roughly equal numbers stating transaction volumes are either unchanged or are falling severely.

The sharpest falls in activity were seen in retail, with activity reported to be down in 82% of countries surveyed.

Hotels, suffering severe contractions in occupancy levels as global travel is essentially shut down, saw transaction activity fall in 84% of countries.

The impact on capital values is yet to be seen at the same scale, with pricing firm in 51% of all sectors globally. More countries reported office, logistics and residential values as unchanged than they did falling. Retail, a sector already weakened due to structural changes prior to Covid-19, has seen falls in capital values compounded: 82% of markets reported falls. Only in China, Malaysia, Vietnam and Portugal have they remained unchanged.

Logistics is a bright spot, with 57% of markets recording no change, or rises, in transaction activity, opposed to 43% seeing falls. Unsurprisingly, healthcare activity and values are holding firm.

The global picture is mixed when it comes to real estate debt. European and North American countries in particular report of tightening of availability and worse terms, most notably in the US and UK. Availability and terms remain favourable in emerging markets such as Indonesia, the Czech Republic, Taiwan and the Middle East.

Occupier demand

Demand for real estate from occupiers is changing due to the pandemic. While many of companies across the globe are working from home, office space demand hasn’t been impacted as severely. A moderate fall in demand was reported by 70% of countries and just 13% stated a sharp fall. Demand in the residential sectors has also fallen moderately.

The hotel sector has been hit hardest with 95% of countries reporting sharp falls in demand as international travel and domestic lockdowns prevent visitors. Retail is in a similar situation with 74% of countries seeing sharp falls.

Logistics and healthcare have bucked the trend. The logistics market in particular is benefiting from increased demand from food retailers. Healthcare, unsurprisingly, is in demand at this time.

The impact of this change in demand is not yet fully realised in rental values which were reported unchanged in 51% of countries/sectors. The exceptions are once again retail and hotels where 30% and 63% of countries reported rental values to have fallen sharply, respectively.

The change in sentiment has translated to favourable terms for tenants, especially in the retail sector. Favourable terms for retail tenants were reported in 86% of countries. Just over 50% of countries reported favourable terms for office tenants, and 23% in the logistics sector.

What does Covid-19 mean for the real estate industry

The disruption associated with Covid-19 is having a profound impact on global real estate markets. Overall, 67% of countries report a moderately negative market impact attributed directly to Covid-19, while 29% cite a severely negative impact.

At a sector level, healthcare, logistics and to a lesser extent institutional residential are currently the most resilient across occupier demand and investment activity. The surge in demand for online retail and the defensive benefits of investing in beds underpin these segments.

Retail, already undergoing a structural change, has seen its woes amplified by the virus. Hotels meanwhile have felt an immediate impact from the international travel restrictions and domestic lockdowns.

In the short term we expect to see capital values and rents follow the falls seen in transaction activity and occupier demand. Covid-19 remains a near term challenge, but certain trends, such as the shift to online retail and changing working habits may be accelerated. This could have long term implications for markets as a whole.

About the survey

The Savills Global Market Sentiment Survey is designed to take the pulse of property markets across the globe, particularly important in today’s fast-moving environment. The findings provide a snapshot of current market conditions based on an internal survey of Savills research heads across 24 global country markets. The results displayed are an aggregate of all countries and sectors, unless stated otherwise.

The survey was conducted 27th to 31st March 2020. Savills research heads in the following markets were surveyed: Italy, Spain, Portugal, Sweden, The Netherlands, Germany, Belgium, Czech Republic, Poland, Ireland, France, UK, Singapore, Japan, Mainland China, Taiwan, Hong Kong, Indonesia, Malaysia, Vietnam, South Korea, Middle East (region), US, Canada.

 

 

 

April 3, 2020

Professionals advising distressed businesses in Scotland should consider Business DAS

Chartered Accountants Wylie & Bisset is advising professionals and other intermediaries with business clients concerned about financial distress resulting from the current social distancing measures to consider a DAS Debt Payment Programme.

A Debt Payment Programme under the Business Debt Arrangement Scheme is a business statutory debt management tool available to Scottish businesses. It can only be set up by an insolvency practitioner.

Gordon Chalmers, partner and insolvency practitioner at Wylie & Bisset, said that, if approved, a Debt Payment Programme allows all debts of the business to be repaid over a period of up to five years. If creditors have started the legal process of recovery, then a Business DAS will stop this action going further.

“If approved, the plan will freeze all interest and charges,” said Chalmers.

“To be eligible for the scheme, you must demonstrate that the business: has more than one creditor; has a place of business in Scotland and operates under Scots Law; can sustain a payment to repay debts off within five years; has declared all its assets to an insolvency practitioner..”

When a business applies for the plan, an Insolvency Practitioner must provide a declaration that the business: has a reasonable prospect of being able to complete the Debt Payment Programme; can make the payments within five years; and is trading or is operating in the purpose for which it was formed.

The types of business that can apply for this scheme include: a partnership; a limited partnership; a corporate body other than a company registered under the Companies Act 2006; a trust and an unincorporated body of persons, such as a football club.

April 3, 2020

Aldermore streamlines mortgage offering

Aldermore Bank has today taken the decision to streamline its mortgage product offerings and cap loan to value (LTV) options on residential and buy to let products. This will allow the Bank to focus on supporting its existing customers, during a period of high request volumes, while still being able to support the housing market despite challenges due to physical valuations not being able to be conducted in this period of social distancing.

In streamlining its product offerings, Aldermore will be temporarily reducing its mortgage range open to new customers, including credit-adverse and Help to Buy Equity Loan products, alongside withdrawing our 3 year fixed rate products and term variable products. All HMO and multi-unit freehold products up to 6 bedrooms/units will be put on hold at this time1. Existing applications, where a product has already been reserved, will continue to progress.

Aldermore will continue to offer the following products:

Residential mortgages:

  • Standard 70-80% LTV with a £999 fee for purchase and remortgage
  1. 2 year fixed 70% LTV from 3.18%
  2. 5 year fixed 70% LTV from 3.38%
  • 85% High-LTV with a £999 fee for purchase and remortgage
  1. 2 year fixed at 4.08%
  2. 5 year fixed at 4.28%

Buy to let mortgages:

  • Buy to let for individuals – Single residential investment properties (up to 75% LTV)
  • Buy to let for companies – Single residential investment properties (up to 75% LTV)

Due to physical valuations becoming impossible under the government restrictions, Aldermore has in general moved towards remote valuations for owner-occupied properties and buy to let single unit applications.

Where remote valuations are not possible, Aldermore is currently working through how this can be remedied but until that time more complicated valuation cases have been put on hold until new processes can be created for them or physical valuations recommence.

Aldermore is a continued supporter of government initiatives to ease financial strains placed on home owners and landlords. The Bank is offering payment breaks for existing home owner and landlord customers impacted by COVID-19 and is providing three-month mortgage offer extensions to customers that have exchanged. We will continue to be supportive of future initiatives the government and UK Finance may announce to further help customers at this time.

Jon Cooper, head of mortgage distribution, Aldermore, said: “It has been an extraordinary few weeks for the industry and the country as a whole, and this has led to the necessary decision to temporarily reduce our options for new customers. Our aim is to continue to support the market as much as possible while we work hard to maintain the service required to our customers during this worrying time for many.

“We fully understand and appreciate this is a period of stress and anxiety for many customers and we are focused on providing them with the service and flexibility they expect and need at this time. We would like to thank all our customers and brokers for their patience and understanding at this time – we are here to get through this together.”

April 3, 2020

Government allows firms to rehire and furlough staff who left for other jobs

After a campaign by MoneySavingExpert.com founder and chair, Martin Lewis, the government has agreed to change its Coronavirus Job Retention Scheme guidance, in order to clarify that firms can rehire and furlough those who left for other jobs, which then fell through due to Covid-19.

Under the scheme, a firm can choose to put employees who were on the payroll on 28 February 2020 on furlough (a bit like a standby mode), where they don’t work, and the state finances 80% of their salary up to £2,500. Employers can top this up to 100%, but are not required to. Full information is in the MSE coronavirus employment rights guide.

Official guidance has always stated that they can rehire and furlough staff they’d made redundant after 28 February. Earlier this week, Martin got confirmation that nothing explicitly prevented firms from doing the same for staff who’d left and whose plans were then derailed due to the coronavirus.

Yet without seeing this in black and white from officials, many employers said it couldn’t be done. So after further discussion with Martin, HMRC agreed to provide MSE with the following statement, and to change the official guidance as soon as possible.

A government spokesperson said: “The Coronavirus Job Retention Scheme is aimed at those who would otherwise be unemployed as a result of coronavirus. It allows for those who were on the payroll of a company on 28 February but subsequently left to be put back on payroll and furloughed.

“This includes those who have resigned to start a new job after February 28. They may return to their old employer but decisions around whether to offer to furlough someone are down to the individual company.”

Martin Lewis comments: “I’m grateful to the Treasury and HMRC for the official statement and agreeing this amendment to the guidance. Via the furlough scheme, the government has outsourced an arm of the emergency welfare state to corporate Britain, and made it the gatekeeper of this new form of wealth support. The hope is this will allow us to restart the economy quickly when we come out of lockdown.

“For that to work well, we need employers to take on a moral duty to deliver these responsibilities for the betterment of individuals and the economy. If they re-recruit someone and furlough them, they can put them on 80% of their salary – and the state pays all that salary plus national insurance and any pension contribution. There’s no cost to the firm, though there may be a short-term cash flow issue.

“While I’ve heard many cases of firms furloughing those they had made redundant, those in need who left voluntarily have met a brick wall. Some firms have simply been unwilling, and sadly the rules have given them full discretion, leaving those affected nowhere to go. Yet others have good relationships with their former colleagues and have told them, ‘we would if we could, but the rules don’t allow it’.

“Well now it’s official, the rules do allow it, and it would be wonderful if they deliver. Employees who left after 28 February having resigned for a new role that fell through due to the coronavirus can be rehired. This includes both those who didn’t start the new job, and those who did, but now face redundancy because they were new starters after 28 February, which means they can’t be furloughed.

“Though to be clear, where the unemployment isn’t caused by the coronavirus, for example someone who voluntarily left a job to take a few months off to travel the world, the rules don’t allow them to be rehired in order to be furloughed.”

April 3, 2020

Half billion-pound coronavirus support package now available for region’s SMEs

Small businesses across the West Midlands have started to receive more than half a billion pounds of financial aid to help them through the coronavirus lockdown, it was confirmed today.

A specific government funding stream of £561m for small businesses was transferred to the seven metropolitan West Midlands councils on Wednesday (April 1) and more than £1m has already been distributed, the region’s Economic Impact Group has said.

More than 50,000 small businesses in the West Midlands are eligible for financial support as part of the government’s wider economic support package to cushion the impact of the lockdown.

Most will be able to get small business rates relief and will receive £10,000 each. The remaining firms are retail, hospitality and leisure firms with a rateable value of between £15,000 and £51,000 and will receive £25,000 each.

The seven councils, Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton, have been handed responsibility for getting the financial aid to firms.

The region’s Economic Impact Group, which brings together key public and private sector organisations including the West Midlands Combined Authority (WMCA) to help ease the effects of coronavirus on the regional economy, is supporting councils to make the grant payments quickly.

Mayor of the West Midlands Andy Street said: “At least £561m has now been delivered to the West Midlands and this will be welcome news for thousands of small businesses struggling in the face of this pandemic.

“The challenge now is to get this money, and the other funds announced by government, out the door and into the hands of these small businesses as quickly as possible, and we are doing everything we can to make that happen.

“It’s crucial that businesses across the region are able to survive this pandemic not just for the livelihoods of families in the short term, but also because they will be vital in getting our economy back on its feet once this is all over.”

Cllr Ian Brookfield, WMCA portfolio holder for economy and innovation and leader of City of Wolverhampton Council, added: “Small businesses are the backbone of our regional economy but have been hit hard by the lockdown and many are struggling to survive.

“We must do everything we can to make it as quick and easy as possible for our small businesses to access this money.

“But I’m pleased that confidence has been put in our local authorities to get this financial support out to those who need it. Councils have a unique understanding of the needs of their local communities and I believe are well placed to support their small businesses through this crisis.”

Despite financial support now starting to get through to firms, the Economic Impact Group has expressed concern over a lack of support for some other businesses.

Tim Pile, chair of the region’s Strategic Economic Development Board, said: “The chancellor’s financial support package for small businesses recognises the immense scale of the challenge they are immediately facing, and I am pleased to see that money is now being made available. Swift action in administering these funds to businesses is paramount. Pace and delivery are critical.

“Whilst the current measures are extremely welcome, it is also important to recognise that there are still businesses and individuals not being covered by the available support. The impact of Covid-19 is already taking a heavy toll on the economy. Rapid recovery is absolutely critical and we must ensure that as many of our businesses as possible are protected, survive this period and then help rebuild our economy.

“LEPs across the country are working extensively with partners to gather intelligence on how businesses are being impacted. I would urge concerned businesses who are struggling to continue to contact their Growth Hub, along with business representative organisations such as Chambers of Commerce. That way we can provide support and guidance as well as a clear picture on gaps in provision directly to policymakers.”

The Economic Impact Group has been holding a weekly, virtual meeting since early March. Last night’s (Thursday April 2) meeting also heard how the WMCA has set up a Rapid Recruitment Team, which is working with training providers to find suitable candidates for industries in critical need of extra staff, such as supermarkets, care homes, hospitals and other essential services.

Small businesses seeking support under the coronavirus financial support scheme should contact their local council for information.

April 3, 2020

The Prince’s Trust and NatWest launch £5m grants for young entrepreneurs affected by coronavirus

The Prince’s Trust and NatWest have today announced the launch of a £5m fund to help young entrepreneurs across the UK to keep their businesses afloat during the coronavirus crisis.

The Prince’s Trust and NatWest Enterprise Relief Fund is available to entrepreneurs aged 18-30, who can apply for grants and tailored support from today. Grants can be used to maintain core business operations during the crisis, as well as meet any existing financial commitments, such as paying for essential equipment or settling invoices from suppliers. In conjunction with these grants, the initiative will also offer one-to-one support and guidance to applicants who need it.

To be eligible, businesses must have started up in the last four years and be run by someone aged 18 to 30. Young people who are in the process of starting a business and don’t have any other source of income during the crisis are also eligible to apply for a grant. To apply for funding and support from The Prince’s Trust and NatWest Enterprise Relief Fund visit https://www.princes-trust.org.uk/about-the-trust/coronavirus-response/enterprise-relief-fund.

Alison Rose, CEO, NatWest Group said:

“We know that the impacts of the coronavirus are being felt by the UK’s businesses and we are doing everything we can to support our customers through these unprecedented times. It is imperative that the next generation of entrepreneurs also get the support that they need to ensure they get through this period, and I am pleased to be partnering with The Prince’s Trust to offer these grants to the UK’s young and up and coming businesses.”

Jonathan Townsend, Interim UK chief executive of The Prince’s Trust said:

“It is more important than ever to encourage and protect the entrepreneurial spirit of young people in the UK. Small and medium sized businesses make up most of this country’s economy and we need the next generation of entrepreneurs to come out fighting on the other side of this crisis. The challenge, in the short term, is that many young entrepreneurs whose business models are ordinarily completely viable are now suffering a considerable loss of income during this unprecedented economic time.

That’s why this new fund is so crucial; it’s a lifeline that will help these businesses make it through the challenging time ahead. It complements support from the government and allows us to provide grants to those who need it most.”

The Fund builds on the existing partnership between The Prince’s Trust and NatWest which supports young entrepreneurs in the UK. Since 1983, The Prince’s Trust has supported over 88,000 young people to start their own business through its Enterprise Programme. NatWest Group is the largest and longest supporter of this programme.

Entrepreneurs aged 18-30 who are not eligible for the fund but find their businesses to be affected by coronavirus can contact The Prince‘s Trust for support. Every young person who gets in touch will be offered personalised one to one support to connect with mentors or build their skills.

As part of its wider response to coronavirus, The Prince’s Trust has launched its Youth Action Plan to show how it will support young people who are out of school, unemployed, self-employed or generally needing a confidence boost over the coming weeks and months. If you would like to find out more, or to help The Trust in its mission to be there for the nation’s young people, search ‘Prince’s Trust’ online.

NatWest has put in place a broad package of financial support with solutions for business customers, large and small, during the crisis:

  • Capital repayment holidays to help customers reduce the impact on their working capital from repaying existing loan facilities.
  • NatWest has opened up the Government’s Coronavirus Business Interruption Loan Scheme (CBILS) to more customers, that are eligible under the scheme rules, than any other Bank. The minimum loan size that we offer under the CBILS scheme is £5,000 and available to sole traders & partnerships as well as limited companies.
  • NatWest will not take a new or increased personal guarantee from any customer that obtains funding through the CBILS scheme.
  • Fee free overdraft facilities up to £5,000.
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