Road to Recovery
Support for your business
Road to Recovery
<big>Support for your business</big>
Introduction
As we enter the next phase of the coronavirus crisis and the economy reopens, you’re likely to face a new set of challenges. We’ve put together additional support and information to help you over the coming months.
What you'll find in this guide:
Section 1 – Economic Overview
Section 2 – Key areas of focus to help you re-balance your business for maximum productivity
Section 3 – Implications for your business and support available
Building resilience for recovery
As lockdown eases, the reopening of the economy will bring with it new challenges for businesses, from adapting to new ways of working to coping with evolving customer demands and economic uncertainty.
Taking steps to build resilience through improved productivity, strong cash flow and an agile supply chain will put businesses in the best possible position to succeed. And Lloyds Bank is dedicated to helping our customers survive and thrive through this recovery period.
Lloyds Bank is dedicated to helping our customers survive and thrive through this recovery period
In this guide you’ll find information on cash and cost control, forecasting in times of uncertainty, enhancing supply chain visibility, how contactless payments can aid your reopening efforts and managing cyber and supply chain risks.
There are also guides on rethinking your business model, growing as a leader and supporting your staff’s health and wellbeing, from our partner Be the Business.
Over the coming months we know many businesses will be looking for extra support and guidance as they rebuild. Our team of Relationship Managers are available via telephone and video conference and we encourage you to get in touch and keep them informed of any challenges you are facing or help you may need.
We hope you find the information in this guide useful as you navigate the coming months.
Paul Gordon
MD SME & Mid Corporates
<b>Section 1</b>
Economic overview
The UK Recovery Tracker
Welcome to the Lloyds Bank UK Recovery Tracker. In this new, monthly report we provide key insights into the shape and pace of the UK‘s economic recovery.
The COVID-19 pandemic has had a major impact on the world economy. Earlier this year, global activity collapsed as governments around the world took drastic measures to contain the spread of the virus, including the widespread closure of non-essential business and restricting movement and travel. In the UK alone, the level of economic activity, or GDP, fell by over 25% across March and April combined as a direct result of such actions.
On a more positive note, as this report highlights, the UK and broader global economy have entered the recovery phase as lockdown measures have been eased.
Nevertheless, given the nature and scale of the pandemic’s impact, there remains an unusually high degree of uncertainty around the outlook, particularly given that its effects have been varied across countries and industries. As such, the situation remains extremely fluid.
Working in collaboration with IHS Markit, and leveraging their Purchasing Managers’ Indices (PMI), this publication provides a comprehensive overview of the evolving economic situation.
The report tracks the recovery as some countries continue to navigate the rapid spread of the virus, while others fear a resurgence or second wave.
We monitor the progress of the major economies against the relative stringency of their lockdown measures, revealing those with more scope for growth given their current progress and relative levels of containment.
The performance of global industry sectors is presented, again highlighting the close link between activity and mandatory measures aimed at tackling the pandemic.
As well as assessing how the UK economy is faring in a global context, this report considers the momentum and sustainability of the recovery.
For the first time, we are able to share unique insights for the UK at an industry level, with survey data on 14 key sectors. By using comments from survey respondents, we are also able to assess the extent to which topical themes feature in their current thinking and expectations for the future.
The UK economy is in uncharted waters and the future trajectory of the pandemic is yet to be fully understood or managed. This report is aimed at improving understanding of the issues that matter to businesses.
The next few months will be a crucial time for businesses of all sizes, across all sectors. Our relationship teams and product specialists are available online and, on the phone, to talk through these findings to help you understand and identify key business challenges and help develop the best solutions to support your recovery.
Read the full report here
<b>Section 2</b>
The road to recovery
Managing working capital through recovery
Managing working capital through recovery
The level of uncertainty regarding future trading has left many businesses with concerns regarding how long their cash reserves will last. Many businesses report that, despite the range of government backed schemes, their cash reserves may not be enough to last the next six months.
How you manage working capital is therefore now even more crucial as businesses move into the next phase of COVID-19 and recovery. Preparing regular and accurate forecasts will be critical to identify and manage potential future funding requirements.
Lloyds Bank has identified crucial steps to consider split across three main themes.
1. Prepare regular cash flow forecasts, including scenario planning
- UK companies will experience significant pressure on cash flow in the coming months as financial support measures are gradually phased out.
- Accurate and timely cash flow information will be critical in the months ahead.
2. Review customer invoicing and collection processes
- As firms restart and the demand for cash increases it will be important to review end-to-end customer order and invoicing processes.
- Agreeing and documenting payment terms with customers is critical and will provide clarity over invoice due dates.
3. Evaluate international trade terms to optimise cash flow
- The potential impacts of Brexit could increase lead times and extend cash conversion cycles at a time when pressure on working capital is increasing.
- It will be important to review contractual terms with international trade agreements to minimise the impact of any changes including new duties and tariffs.
Controlling the risks associated with working capital will help to mitigate additional cash flow pressures associated with the phasing out of Government and other support schemes and the implications of Brexit.
Read our full guide on how to make your cash reserves last the distance
Building resilience -
a focus on payments
Building resilience -
a focus on payments
Advancing payment and ecommerce technologies have helped many businesses survive and thrive during lockdown and as the economy re-opens they’ll be key in enabling companies to open safely.
With social distancing guidelines still in place, many customers are likely to be more comfortable making transactions via phone or online for the foreseeable future and solutions like payment by URL and Pay-by-Bank can help facilitate this.
Responding to the pandemic has been an extraordinary challenge for all businesses and many new and unexpected issues have now emerged that could not have been envisaged just a few months ago.
The concerns of consumers and employees across all sectors of the economy are having a significant impact on all face-to-face interactions. 99% of businesses who responded to a recent ONS Survey said they would make changes to deliver social distancing and use PPE in their businesses.
Current social distancing measures and the potential for future lockdowns demands that businesses take immediate action and a vital area of focus has been the taking and making of payments.
The decline in the use of cash
Cash use in the UK has been in decline by around 4% per year and it has fallen sharply during the crisis. A LINK survey carried out during lockdown found that 75% of respondents were using cash less than they had and supermarkets saw the use of cards rise by 78% year on year as their customers switched away from cash. The question for all businesses now is to what extent will this move away from cash endure as we exit lock down and begin our recovery?
The pin-pad challenge
Even the use of a simple pin-pad becomes a challenge as it creates a need for unwelcome proximity and contact. A simple step here has been to increase the contactless payment limit to £45 to better enable more contactless transactions. However, many businesses operate with much larger average transaction values and need alternative solutions that maintain a socially distanced solution.
Digital becomes the prime channel
The importance of an e-commerce solution to combat the effects of lockdown for many businesses has grown significantly and has become a vital component to build a resilient business.
Remote selling can also better meet the needs of clients especially if they are more reticent to return to traditional face-to-face channels.
Creating a new or augmented online channel not only addresses social distancing, but can drive new or incremental revenues, and alongside the additional interactions, it can deliver an improved customer experience and help maintain activity should we face a similar crisis in the future.
Our data shows that supermarkets saw e-commerce surge by 78% year on year during April. Customers both ordered online and used app-based means to pay via mobile in store, removing the need to interact at the till point or use touch screen technology at self-service checkouts.
Accepting payments in a socially distanced economy
Looking ahead
The Payments landscape in the UK has been evolving at pace in recent years as a result of a pro-active regulatory climate, developments in technology and evolving consumer behaviour. Consequently, our payments infrastructure is well-developed and forward-thinking. This leaves the UK well placed to respond to the new payments challenges posed by COVID-19.
The impacts of the crisis has changed attitudes to the use and adoption of online and e-commerce and the potential now exist for these new activities to become habitual. Critically, the adoption of online channels may be sustained.
More traditional payment methods have been given new possibilities, including the adoption of cheque imaging as a means of paying in cheques via a mobile phone or bespoke scanner.
Similarly, the advent of intelligent safes allows cash to be stored on a client’s premises and be collected when necessary, but to be added to their bank balance on the day it is received.
Mobile wallets have become more important and while with the dominant solutions in the UK, Apple Pay and Android Pay, are based on Near Field Communications (NFC), the use of the mobile also permits app-based adoption of Quick Reaction (QR) codes to enable payment on a bank-to-bank basis. Simple to use and free from the £45 contactless limit.
With such mass adoption of smartphone and the similar usage of app-based solutions, additional payment methods are already appearing. Fuel filling stations now offer motorists apps that mean you can refuel and pay by app from your car.
Similar app or QR code-based solutions can also be used in hospitality settings and further reduce the need for staff-to-customer interaction. Restaurants and bars can use apps to provide customers with menus, take orders and settle their bills on leaving.
The Covid-19 crisis has created a huge challenge for businesses across all aspects of their operation. Their ability to make and receive payments, to operate in times of lockdown and to deliver a social distancing solution for their customers, employees and suppliers has become crucial.
Key actions will be:
- Review the payments solutions available to your customers both in new-normal trading and in potential future lockdown scenarios.
- Move to adopt solutions that deliver effective social distancing to reassure both customers and employees.
- Optimise solutions not just to deliver social distancing, but to also offer an enhanced client experience that delivers enhanced value for customers.
- Consider how your payments are made and the opportunities to adopt digital solutions that build resilience and automation for domestic and international payments.
To find out more click here to read more on the developments in payments.
Remote = resilient:
The benefits of embracing
e-commerce post lockdown
The importance of an e-commerce solution to combat the effects of lockdown for many businesses has grown, becoming a vital component to build a resilient business. A truly remote solution also better meets the needs of clients perhaps more reticent to return to face-to-face channels in the near term or wanting to do business on their own terms.
Creating a new or augmented online channel not only addresses social distancing, but can drive new or incremental revenues, and alongside the additional interactions, it can deliver an improved customer experience and help maintain activity should we face a similar crisis in the future.
Changes in how customers purchased groceries during lockdown provides potential examples of how amendments made in haste, and by necessity, may become the new normal. Our data shows that supermarkets saw e-commerce surge by 78% year on year during April.
Customers both ordered online and used app-based means to pay via mobile in store, removing the need to interact at the till point or use touch screen technology at self-service checkouts.
Other large retailers permitted to operate during lockdown also moved to e-commerce as a way to create separation at the point of purchase. DIY or hardware stores stayed open by switching to a “click and collect” model with customers ordering online and collecting at a prearranged time.
The concept of pre-ordering has the potential to become much more important. The ability to pre-order and pre-pay before arrival can become very attractive. It can limit dwell time and the duration of face to face interactions. Many consumers have used this approach to limit the need to queue for a coffee, but it now has many more potential applications. Such capabilities can be applied to services just as much as to goods, including vehicle maintenance and medical practices as well as restaurants and bars.
The Lloyds Bank Digital Index shows that, since the lockdown period began in the UK, there has been a 51% uplift in registrations for online banking with key growth areas being those traditionally seen as late or low adopters. For all age segments above 50, adoption has shown a material uplift on the prior year. Our data shows that consumers in the over 65 age bracket have moved online throughout lockdown, with online transactions funded by debit cards up from 20% to 40% year on year.
Managing risk
through Covid-19
Managing risk through Covid-19
As the transition from lockdown to the recovery phase proceeds, businesses will be required to broaden their planning from implementing emergency considerations to how to adapt to a more uncertain market and economic landscape.
Now is the time to think about how to manage both threats and potential opportunities to build confidence for the future. There are many challenges facing businesses, some of which will require radical changes to adjust to our new environment. New working practices, supply chain challenges and an unpredictable economic outlook all have the potential to leave businesses vulnerable.
The global pandemic and the measures to contain its spread has led to a very sudden and unprecedented drop in UK and global activity. While the gradual re-opening up of economies and several recent indicators point to a stronger recovery in demand than expected, the outlook for the UK and global economy remains unusually uncertain.
More positively, financial markets have significantly recovered some of their poise in recent months, but markets are acutely sensitive to the evolution of the pandemic and the unfolding of the global economic outlook which is why risk management is key.
Managing financial risk in a
changing world
It is important to note that a switch from unstable financial markets to those which have partially normalised is a form of volatility in itself, and this makes risk management decision-making more challenging.
In the near and medium term, there could be both scheduled and surprise UK and global macroeconomic events which may require swift operational adaptation of businesses.
Covid-19 related uncertainty is playing out against the backdrop of Brexit, a topic which has resurfaced in recent weeks. The outcome of Brexit continues to raise questions for clients regarding supply chain efficacy and exports post transition and the associated skittish market movements tied to sterling.
As businesses reopen into an environment vastly different from the pre-Covid-19 position, the blueprint for successfully emerging from lockdown focuses on three immediate priorities.
The first is liquidity, which in any crisis, is paramount. Activities to shore up balance sheets and minimise operational costs and optimise cash positions have been imperative.
The second priority, as part of future cash flow forecasting, has been to secure margins and mitigate profit and loss volatility against a backdrop of relatively weak sterling, low (and potentially negative) interest rates and commodity prices, which, at times, have seen negative values.
Finally, understanding the resilience of existing and new commercial partners has been a significant focus. In times of difficulty, buyers and suppliers can become financially stressed with shifts in ability to meet delivery times, quality demands, or payment terms. Where previously, the priority had been the economic terms of contractual negotiations, this crisis has driven the focus to consistency of supply and demand.
Building confidence through a resilient supply chain
For many years’ businesses have been focussing on supply chain optimisation to minimise costs and reduce inventories. In so doing, many companies have removed buffers and flexibility to absorb disruptions. For example, Covid-19 has turned these previously perceived strengths of ‘just in time’ inventory levels to potential weaknesses.
The Lloyds Bank Business Barometer shows that whilst supply chain disruption has marginally improved since April, the picture remains extremely challenging across most key sectors. 63% percent of firms in June reported some disruption to their supply chains.
The situation is perhaps made worse by the lack of end-to-end visibility and linear supply chain models. For many companies Covid-19 was the first time that they were faced with having to think about supply chain viability which was dramatically impacted and disrupted business continuity.
Demand has been negatively affected across all sectors with some, such as hospitality and construction, experiencing greater impact than others. When demand falls in this way, companies are faced with the need to balance the daily running of their business, evaluating inventory levels, maintaining fixed costs, and mitigating new risks in anticipation of changes in demand, supply or production which in turn impacts revenue generation.
Equally, when demand increases, it can lead to rapid cash burn – due to the need to source inventory and produce prior to sales – which is not helpful when liquidity is scarce.
As companies prepare to navigate their business beyond Covid-19, banks have an important role to play in that recovery process. At Lloyds Bank we have tailored solutions and helpful online tools that can help you manage your payment and performance risks with your buyers and sellers, better manage the volatility and help companies rebuild more sustainable and agile supply chains that can stand the test of time.
Additionally, some other helpful business strategies may include reviewing:
- product portfolios and potential diversification;
- counterparties – building relationships;
- channel shifts (online vs. physical presence);
- looking beyond Tier 1 suppliers for assessing supply chain vulnerabilities;
- moving from a linear supply chain model to digital supplier network;
- logistics risks of getting products to end customers.
The rise in home-working can open up new risks to your business
Whilst managing the risks driven by the market and addressing issues with challenges in both supply and demand, more standard operating risks are also an issue. UK businesses have had to quickly change the way they operate to adapt to the new normal of the coronavirus pandemic.
Organisations have been encouraged by the government as part of the lockdown process to ask their staff to work from home where possible. Whilst working from home is quite usual for many businesses, for others this has been a significant step. Companies switching to a home working model may not have the technology, policies and training in place to support it securely and may be relying on employee’s personal IT equipment. Without appropriate security measures, this could place your customers, company, and employees at risk.
For further information, click here.
Home working best practices:
- Develop a home working policy appropriate to your business and technology capability
- Set an automatic lock on computers and laptops using a strong password;
- Enable device encryption to protect stored data;
- Make offline backups of your data regularly;
- Update software on your device frequently together with your antivirus software;
- Disable or limit the use of removable media to protect your company’s data and reduce the risk of malware;
- Consider using a reputable VPN (Virtual Private Network) to connect to your company network (beware of malicious VPN software that may contain malware);
- Avoid using open Public Wi-Fi Networks, use a VPN to secure your connection;
- Educate employees to spot suspicious phishing emails and how to safely use collaboration tools such as: Zoom, Microsoft Teams, WebEx.
More details on home-working guidance can be found at National Cyber Security Centre.
Conclusion
The UK is facing one of its most significant economic shocks during peace time. The pace and shape of the hoped-for recovery is unclear, business confidence remains low and the economy is fragile.
However, welcome signs of stabilisation are increasingly emerging. The risk landscape has changed dramatically, where issues seen as a low priority before the pandemic are now seen as critical to business prospects and resilience. Businesses are reflecting on what has become a very different operating environment.
Applying the right resources to both assessing the risks and developing a clear strategy to mitigate them is of great importance. Taking the right steps to implement effective risk management strategies could help provide the resilience to build a successful long-term future.
Key actions will be:
- Consider how financial market movements may affect your business and what risk management solutions are available to support you;
- Rebuild a sustainable and robust supply chain for the future through effectively managing payment and performance risk with buyers and sellers;
- Explore alternative arrangements with suppliers and diversify the supply base;
- Review homeworking best practices and ensure appropriate security measures are in place to protect your business.
For more details on managing risk through Covid-19 click here
Managing your employees through the return to work
How to ensure a smooth, safe return to work…
We recently asked the thousands of UK employers accessing our free Coronavirus Advice Hub what they feel their main challenges will be as lockdown eases.
Perhaps unsurprisingly, the concern at the forefront of most employers’ minds is ensuring the workplace is safe for employees to return.
No matter whether you have remained open, have recently reopened, or are currently planning how and when to reopen your place of work, it’s imperative that you have effective measures in place to prevent the spread of infection. Doing so will give all of your staff the confidence to re-enter the workplace, which will be integral to your ability to operate under new conditions.
Creating a safe work environment
For many employers, the current pandemic will be the first time they have had to confront a serious and imminent health and safety risk. While the exact measures you will need to implement will depend on your specific environment and the activities undertaken, the following six-step approach will help to ensure compliance with relevant guidance and legislation.
> Step 1: Continue to encourage homeworking
Under present circumstances, anyone who can feasibly work from home should continue to do so. This is the only possible way of eliminating the risk of people contracting the disease from work. Remember that your duty of care extends to homeworkers, so you should carry out a homeworking risk assessment to identify potential hazards and ensure remote employees have everything they need to work safely and comfortably.
> Step 2: Workplace risk assessment
When reopening your workplace, or parts of your workplace, you will need to complete a risk assessment and review existing policies, such as your Infection Control Policy. To support you to do this, free sector-specific risk assessment templates and accompanying guidance are available from Ellis Whittam’s Coronavirus Advice Hub.
> Step 3: Monitoring and supervision
Your first line of defence is, of course, to stop the virus from entering your premises. This requires monitoring the health of employees on entry and during the working day and supervising employees so you can be confident that the controls mentioned in the risk assessment are being followed effectively.
> Step 4: Emergency Action Plan
You will need to develop an effective action plan outlining how you will deal with a suspected case of COVID-19 in your workplace. You must make sure that this is communicated effectively so that everyone understands what action will need to be taken should someone experience symptoms or be confirmed as having the virus.
> Step 5: Education and training
In order for your control measures to be effective, all staff will need to be aware of their existence and their importance in maintaining a safe working environment.
Think about how you will communicate your safety arrangements and changes in procedure to staff, perhaps through mandatory awareness training for those returning to work followed by regular updates through established communication channels and signage around the workplace.
> Step 6: Review
Crucially, you must review your controls on a regular basis to ensure they remain effective and align with current government guidance.
Using your risk assessment as the basis for safety and team stability
A risk assessment is not only vital from a health and safety compliance perspective but can underpin and support your employment-related decisions too. Many of the issues employers will face in the months ahead will be impacted by the risk assessments and guidance provided, so to effectively manage employee relations issues it’s crucial that you act in accordance with the measures contained within those documents.
Note that it is a legal requirement to consult with your workforce about the contents of your risk assessment. Not only will this help to protect your position, but it can help to give employees confidence that you are taking all the steps necessary to make the workplace as safe as possible. This, in turn, should encourage them to return to work.
Dealing with refusals to return to work
Now that lockdown is beginning to ease and workplaces are reopening, we are beginning to see employees raise concerns that they do not want to come into work because they do not think it is safe to do so.
The key point will be whether the employee holds a “reasonable belief” about danger in the workplace. Whether that belief is reasonably held will depend on:
- What steps the employer has taken to ensure the health and safety of their employees, particularly those in vulnerable groups;
- What information has been provided to the employee; and
- What steps have been taken to reassure the employee that they are not in fact in serious or imminent danger.
The individual’s circumstances are also important. For example, if the employee suffers with an underlying medical condition, is of a certain age, and/or is a member of the BAME community then their risk profile will be heightened.
Further detailed guidance on navigating these scenarios is available on the Coronavirus Advice Hub.
These are challenging times and it can feel like there is a lot to contend with at once. However, by treating safety as the top priority and taking a proportionate, proactive and collaborative approach to risk, you can minimise most other HR headaches and achieve a smooth, safe return to work.
We have created some sector specific guides to help you manage HR in the return to work.
Ellis Whittam helps over 17,500 British businesses and organisations to create great, safe places to work through fixed-fee Employment Law, HR and Health & Safety support.
For free industry-specific guides, action plans, checklists, risk assessment templates and further COVID-19 support documents, visit its Coronavirus Advice Hub at ew.elliswhittam.com/LloydsBank
While all reasonable care has been taken to ensure that the information provided is correct, no liability is accepted by Lloyds Bank for any loss or damage caused to any person relying on any statement or omission. This is for information only and should not be relied upon as offering advice for any set of circumstances. Specific advice should always be sought in each instance.
Rethinking your
business model and revenue streams
Rethinking your business model and revenue streams
The coronavirus outbreak affected businesses in a variety of ways, with some experiencing huge demand for their products and services and others being forced to temporarily close or find new ways of working to stay afloat.
But whether you succeeded or struggled during lockdown, it’s clear that as the economy starts to reopen shifting consumer habits and new ways of working are bringing new challenges and opportunities for businesses. Reassessing your business model in light of the current landscape can ensure you’re in the best position to adapt to and capitalise on recent changes.
What was previously your best-performing product/service may no longer be in demand. Or the temporary pivot you made to keep you afloat in recent months might actually be the best way forward for your business.
Our partner Be the Business has produced a guide exploring how businesses can reassess their current model to ensure they are still providing value and making the most of the opportunities available to them. From key questions to ask yourself about your business’s future to advice on rebuilding your sales pipeline, it includes everything you need to help you look at your business through a fresh pair of eyes.
See the full guide to Rethinking your business model and revenue streams
See Be the Business’s rethinking your business model and revenue streams checklist
Growing as a leader
As businesses look to recover and grow in the aftermath of COVID-19, business leaders will need to step up and guide their firms through what is likely to be a very turbulent and unpredictable few months.
It’s also likely that during this time there will be some big decisions that need to be made, whether it’s about new working practices, business direction or staffing levels.
Against this backdrop, it’s easy for business leaders, especially in small organisations, to feel overwhelmed and isolated and be left struggling to make decisions confidently. Which is why our partner Be the Business has launched a new guide dedicated to helping leaders make big decisions.
Covering areas including making decisions under pressure, becoming an effective leader and learning to take risks and manage long-term goals, it aims to help leaders establish strong principles and an effective management framework so that at times of uncertainty you are fully equipped to make decisions and carry them out confidently.
See the Learning to make big decisions as a leader guide
See Be the Business’s Learning to make big decisions as a leader checklist
Supporting mental health
To effectively rebuild your business in the aftermath of COVID-19, you’ll need an engaged, motivated and productive workforce, which is why it’s so important to look after the mental health and wellbeing of your employees.
There’s a wealth of research that shows a happy workforce performs better and is more productive. According to the Mental Health Foundation, addressing wellbeing at work increases productivity by as much as 12%.
It’s likely that many team members will still be struggling with the impact of coronavirus and lockdown, and may need some extra support as they navigate the return to work or adapt to changes within the business.
Our partner Be the Business has launched a guide to looking after employees’ health and wellbeing, covering issues workers might need help with in the short-term i.e. coping with significant changes to their job role or ways of working, as well as longer-term strategies for embedding employee wellbeing into your overall business objectives.
See the Staff health and wellbeing guide
See Be the Business’s Staff health and wellbeing checklist
Mental Health UK has also developed some additional resources to help people with immediate challenges, such as adapting to home-working and boosting wellbeing during social distancing.
Business in the Community have a wealth of experience in supporting businesses in moments of crisis and have developed a number of toolkits and factsheets to help businesses build resilience and take practical actions for themselves, their employees and their communities.
<b>Section 3</b>
Further support
for your business
We’re keen to help protect our business customers from the impacts of coronavirus and we’ve therefore introduced a £2 billion package of arrangement fee free finance for businesses with a turnover up to £100 million to help minimise disruption to your business operation over the coming weeks and months.
This support package has been designed to help you manage your ongoing cash flow needs caused by supply chain interruptions or employee absences. The financial support available includes:
1. No arrangement fees for new overdrafts or overdraft limit increases
- Please contact your relationship manager to discuss the support available
2. No arrangement fees for increased Invoice Finance facilities
- Existing clients who have requests for new or increased facilities, please contact your Client Manager in the first instance who will be able to support.
3. Offering capital repayment holidays on loans for businesses that have been severely impacted.
4. Offering repayment holidays on Asset Finance facilities for businesses impacted by the coronavirus.
Please visit our Asset Finance page for more information on how to apply
All lending is subject to status.
Coronavirus government-backed lending schemes
There are three government-backed lending schemes to enable the continued provision of finance to UK businesses during the COVID-19 outbreak. If Lloyds Bank do not already currently provide your main Business Current Account, please speak to your main bank for support in the first instance.
Bounce Back Loan Scheme (BBLS)
- Borrow between £2,000 and £50,000.
-
Interest rate fixed at 2.5%
-
Simple online application
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Funds transferred to your bank account within days of being accepted
-
As of 24 September, the scheme will be extended until 30 November 2020
Find out more >
Coronavirus Business Interruption Loan Scheme (CBILS)
-
For Businesses with an annual turnover
up to £45 million
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Borrow between £50,001 and £5 million
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As of 24 September, the scheme will be extended until 30 November 2020
Find out more >
Coronavirus Large Business Interruption Loan Scheme (CLBILS)
Find out more >
ANY PROPERTY GIVEN AS SECURITY, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT.
Lending for the Coronavirus Business Interruption Loan Scheme and Coronavirus Large Business Interruption Loan Scheme is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.
You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.
Trade and Working Capital Solutions
Our standard Trade and Working Capital product suite allows clients to quickly improve their liquidity position, mitigate risks of non-payment and provides ongoing support to your supplier base.
Documentary letters of credit
Documentary collections
- Seller instructs their bank to forward documents related to the export of goods
- Buyer’s bank presents document to buyer, indicating when payment for them is required and on what conditions, then documents are released
Bills of Exchange (including Domestic Bills of Exchange)
- Efficient way to support a supply chain
- Flexible solution that can allow for the extension of payment terms
- Mitigate against counterparty and credit risk
- Quickly provide liquidity
- More cost effective than traditional debt funding
Trade Finance
- Provides liquidity to both buyer and seller
- Cost effective form of funding
- Flexible transaction lending structures
Invoice Finance
- Often more cost effective than traditional debt funding
- Earlier access to outstanding buyer payments
- Increased headroom and flexibility
- Fast execution of documentation
For further information, please contact your Relationship Manager
UK International Trade Index
The latest UK International Trade Index captures the emerging COVID-19 crisis. Read the Q2 2020 report for unique insight into the impact on global trade.
Key highlights:
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Manufacturing & Service exports show the fastest reduction for over five years.
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Demand for healthcare products are helping to boost the Chemicals & Plastics category.
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Initial signs of recovery in demand from China at the end of Q2 as their economy delivers growth
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Early signs of recovery are indicated with 24% of manufacturers experiencing growth in export sales in June
Guidance for adapting
and accepting payments
during Covid-19
Guidance for adapting and accepting payments during COVID-19
Meeting your customers
changing needs
In order to manage the impact of coronavirus, such as social distancing requirements, many businesses will have to adapt the way they are accepting payments. Businesses are already seeing these changes in customer behaviour with the latest statistics showing that the growth of contactless methods of payments in stores equates to 78% of transactions, more customers are shopping online and cash transactions continue to decline.
By setting up a website, and new ways to accept card payments, many businesses are finding new benefits for their business, from being able to trade 24/7, reduced location restraints and reaching new markets.
For more information on getting set up to take payments online – see this document.
We want to support you in being able to provide the services that your customers want
The types of services available
Taking payments over the phone
Taking payments on a website
Contactless payments
- Visa and Mastercard increased the limit of contactless from £30 up to £45 per transaction
- Allows quick easy minimal contact payments
- Apple pay, Android pay and Google pay continue to facilitate contactless transactions at higher values
Choose how quickly you want to receive your funds
- Flexibility – you can choose to receive funds within as little as 1-2 days
- Improves cashflow and working capital management
Helping you find new ways of managing social distancing
- Capability to offer customers a pre-ordering solution via mobile app or website
- Generate payment invoices via multiple channels i.e. text message or email
Taking orders in advance via a web order form or app available via pre-ordering products
- There's no longer any need for customers to wait at the till or order and pay in the face to face environment.
- By using an app or online web order form, customers can pre-order from a menu and pay in advance, avoiding a queue, meeting social distancing requirements, and saving time.
- With various options such as click and collect, delivery or click to curb, the solution is adaptable to many different business needs.
- Merchants also have access to a dashboard where the product menu, promotions, operational hours and lead times can be managed.
Further details on mobile app solutions >
Taking orders via a Virtual Terminal
- A virtual terminal is a quick way for small businesses to start accepting card payments on their website or over the phone, without the need for a physical terminal.
- With online functionality, you can securely accept multiple payments at the same time, using the range of functionality on offer:
─ Hosted Payment Page for online payments
─ Virtual Terminal for mail & telephone orders
─ Strong Fraud Prevention tool to help protect you and your customers
─ Detailed online Management Information portal
The COVID-19
Webcast Series
Practical guidance
to support businesses
As the impact of coronavirus is felt across the UK, you may have concerns about how it could affect your business.
Our webcast series will cover a range of financial and operational topics as well as the human impacts for businesses.
Topics covered include:
- Pivoting your business in challenging times
- Leading and collaborating using digital tools
- Surviving and thriving in an online world
- Looking after your Mental Health & Well-being during COVID-19
- Helping you to manage fraud risks during COVID-19
New webcasts will be added regularly, so check back frequently.
See the series here >
Business mentoring
Carrying the weight of responsibility for your business and employees through an unprecedented pandemic can be an isolating experience. Now, more than ever, we need to work together, whether that’s sharing advice on managing financial risk or having a sounding board for making decisions. Business mentoring can offer valuable support during this time.
Rapid Response Mentoring
Our strategic partner, Be the Business, has introduced a free 12 week Rapid Response Mentoring programme, offering peer-to-peer support to help guide SME leaders through the COVID-19 crisis.
Experience has shown that the Rapid Response Mentoring programme has had the most success with businesses who have a turnover of around £1m and more. The free 12 week programme will entail:
- Rapid matching process with registered mentors from Britain’s leading firms and SMEs
- Help in developing a suitable business strategy and handling acute business challenges
- Regular weekly calls or online meetings.
Find out more about the Rapid Response Mentoring programme
By sharing best practice with SME’s and understanding what really matters to them; if we can inform, guide, and just be there for them, then we have every chance to help them survive and support them as we come through the crisis together."
Glenn Bemment
Business Mentor & Regional Director & Head of Mid Corporate – North Commercial Banking
Lloyds Bank
