The business I work for is not hugely profitable. In fact, it just about covers outgoings and wages, with very little to spare and the MD doesn't even draw a regular salary. It's no surprise then that the shutdown has caused us enormous problems. Even if we were open, the public is simply not interested in buying cars at the present time.
Rather than jumping on the government loan bandwagon, our MD is taking a leaf from the Oliver Cromwell book of strategy - do nothing until forced to by circumstances. Cromwell followed this rule of thumb throughout his life and it served him well. Problems either resolved themselves without his intervention, or opportunities afforded by waiting presented themselves.
Firstly, our MD doesn't want to take out a loan until he knows, within the penny, what the company liabilities are and what the needs are, and that will only become clear with time. Taking out a loan far in excess of requirements is foolish. Also, with each announcement from Rishi Sunak the terms of loans improve - rules and onerous barriers keep dropping on an almost daily basis as issues arise.
Those that jumped on the bandwagon early are hamstrung by these onerous conditions and are contractually obliged to either monstrous interest rates or having to put personal assets on the line. Our MD's strategy is to not apply until the last possible moment, when he fully expects the terms will be the best available. Not a bad strategy, given the business would not be viable with huge loan or interest payments.
Those of us working for the company who have prudently saved can weather the storm until a loan is secured for the company on terms that ensure the company survival, but those who have lived far beyond their means can't. It is better to have a company with fewer employees than no company at all and you can't save those who have been foolish.
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