Dear Members,
Following our earlier posts, I have had a number of banks on the phone, saying that
- Relationship Managers and Credit Teams are working long hours to process the large volume of requests
- The Loans are typically a few % over base
- They are not looking for security over personal assets or a personal guarantee
- Where the business has assets they will look for security there, however they are fast tracking the usual process for taking security.
- The are looking at Capital repayment Holidays on existing loans of up to 6 months
- That this is currently for existing customers only
So the good news is that the earlier positions are changing fast.
Please let me know, In confidence, if your bank has helped you on nick@welhatchamber.co.uk because as we know bad news travels fast, and we tend to hear the horror stories. It would certainly be nice to have some good things to say.
Incidentally despite the Government Spokesman blaming the banks, the banks say they were implementing government policy, have informed the banks that it was not working, and the government has since amended the rules.
Why this was not sorted out previously, or at the latest November 2019 – 5 months ago, is a question yet to be adressed.
Nick
Alan Clark
My suggestion is to let Accountants participate in the cash distribution effort as the banking sector cannot get the money out to where it is needed quickly enough. They no longer have the resources and their internal rules constrain the rapid turnaround of funding. Especially where the applicant is not an existing customer.
Most businesses have an accountant who is ideally placed with knowledge of the client and their business. Why not let them not only submit applications but also distribute funds via their client account once received directly from government?
Nick Brown
Alan hi,
Yes banks have certainly lost a very high percentage of their branches and customer facing staff. I heard 1 in 10 from the peak. I think the only increase is in IT staff to patch up their legacy systems.
We certainly need help from somewhere. Professional Accountants have two big advantages, they know their customers personally and the businesses performance so they can manage the qualification criteria, and were any fraud to be involved, their professional qualification would be on the line.
The Government, or more accurately the civil service are terrified of Fraud, because there is so much of it and this handout is a gift to fraudsters.
Companies like Payment Cloud Technologies (PCT), produce the cards for flight delays, and can get cards to any airport in the world in a matter of hours. Also the cards can only be used in certain outlets, hotels restaurants etc.
If the Cards were only for food, there is a limit to the number of Mars Bars a Fraudster can Eat. Also you would know where he was spending the money. Spend the money in local shops and the cash will get into the economy.
So yes, Accountants vouch for their clients, quantify the entitlements, reduce the checking backlog, get money into firms re rates and salaries, pay through payroll. Feed back amounts paid and NI numbers, pay the non-employed by the PCT card route.
Get money into the economy, save businesses and hence jobs. The fall out from all of this is going to be massive, over 100,000 deaths globally and counting.
Moving off topic.
Today we hit 1.5 million infections, and 100k deaths worldwide. Terrible. Mass graves in New York today.
We should have stopped the planes and contained it in China. I wonder how honest China were about about the size and depth of the problem. Send them the bill. Maybe they know its coming, hence the dodgy stats. By letting the virus out into the world it has allowed it to mutate. This is the real crime of stupidity. We did not stop the planes. Instead we arse covered and hid behind so called experts in the WHO, who gave the wrong advice.
We should remember that 1918 so called Spanish Flu, was contained but reemerged in a more virulent strain. In it’s secondary mutation mode it killed 50 million people.
“It is estimated that about 500 million people or one-third of the world’s population became infected with this virus. The number of deaths was estimated to be at least 50 million worldwide with about 675,000 occurring in the United States. Mortality was high in people younger than 5 years old, 20-40 years old, and 65 years and older. The high mortality in healthy people, including those in the 20-40 year age group, was a unique feature of this pandemic.”
In 1918 World Population 1.8 billion. today we are at nearly 8 billion. So proportionately we are looking at 200 million deaths.
Again on another tangent. I have just found out that there are more people in California than the whole of Canada. And that there are nearly twice as many people living in the UK, as there are in Canada.
Also that you can fit the whole of the USA into the space occupied by the Sahara Dessert. Further that there are are only 2.5 million people mostly Nomads living in 3.5 million Sq Miles of Dessert. So plenty of room for self isolation there.
I’m rambling, it must be pub withdrawal symptoms again.
Nick