The COVID-19 pandemic has triggered many business challenges. Entrepreneurs are heavily affected by the lockdowns instituted by the government, thereby disrupting business in the entire nation. After the lifting of the lockdown, the ministers are expected to develop a strategy for leveraging approximately two million investors who have not yet enjoyed the government support because of the pandemic.
Many entrepreneurs depend on dividends as a key source of income, and so were heavily affected this time. The coronavirus pandemic has impacted negatively on the economy because of the national lockdown, thereby the government has introduced some relief schemes to uplift the tormented businesses.
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The government support is expected to reach the self-employed individuals including, limited companies, sole traders alongside other ventures through tax relief, loans, cash grants among others, regardless of whether the company is operational or not. David Azzato claims that this support for all businesses emanates from an interruption loan set aside by the UK government.
The relief is meant for the self-employed business people whose deterioration has been triggered by the pandemic’s restrictions. David Azzato says that the government introduced a job retention program to ensure businesses could withhold their employees and still pay them. These employees could enjoy business rates and tax reliefs.
David Azzato says that these government loans can be applied until January 2021, and one must have a UK-based venture, and be among the heavily affected group by the pandemic. The government is ready to guarantee about 5 million Euros to encourage and facilitate lenders to take part in the program.
Business interruptions are also available, offering payment covers for the initial year including the interests as well as other lender-levied add-ons. The COVID-19 pandemic has caused varying challenges to businesses, and so they apply certain types of loans that include; a term loan, overdrafts, invoice finance, and asset finance.
A term loan involves repaying the finances over time within regular payments and overdrafts entail boosting the cash flow using credit. Asset finance helps businesses to trigger new purchases and invoice finance covers the cash flow depending on the customer owing.
These rescue schemes and programs are beneficial to business people but entrepreneurs depending on dividends have not enjoyed support. Grants helped the self-employed investors and workers supported by furloughs; the passive income earners were sidelined. Directors and entrepreneurs have also been paying taxes, and so the government should ensure they enjoy the relevant support like other individuals have. Click the link to learn more: https://www.crunchbase.com/person/david-azzato