Hemel company's survey reveals small businesses believe they will not last more than few months if lockdown continues

A company in Hemel Hempstead conducted a survey of small businesses and found that many believe they will not last more than a few months if lockdown continues.

Vanarama, the UK’s leading independent commercial and personal vehicle leasing company, decided to take a temperature check of over one thousand small businesses, most of which make up their customer base, and ask them how their companies were faring during the pandemic and their views on the funding offered by the UK Government.

Responses revealed that nearly 50 per cent of the 1,000 respondents said that their business had to improve within a month if they were to continue trading with just over 32 per cent indicating that they could tolerate up to three months with business at its current reduced level due to lockdown, and 60 per cent thought the Government had been helpful in setting up so much support but it’s clear that the help is not coming fast enough.

The survey, which was sent to Vanarama’s commercial customer base, which accounts for the major trades, shows the uptake of Government support has been quite strong, although most needed additional help.

Of those who had taken advantage of the Government’s financial support schemes the Self-Employment Income Support was popular with just over 25 per cent taking this route and 13 per cent applying for the Coronavirus Job Retention Scheme.

The opportunity to take a Mortgage holiday or requesting Universal Credit saw pick up with just over 15 per cent and 10 per cent respectively taking this direction. It also highlighted that over 48 per cent had not placed employees on furlough which is unsurprising as many respondents are sole traders.

Andy Alderson, CEO and Founder, Vanarama, said: "We set up the Vanarama Covid-19 Small Business Support Team to assist the “Backbone of the British Economy” weather the storm and get their hands on the funding they required.

"From the results of our survey it’s apparent that this service was much needed as so many sole traders are accessing Government support.

“We were pleased to hear that the Government has listened to business owners about the length of time it takes to process requests and that its newest scheme - the Coronavirus Bounce Back Loan, which offers loans up to £50k, will be made available to small businesses within a few days of application.”

Vanarma's Covid-19 Small Business Support Team provides free guidance to sole traders, the self-employed and limited companies on how to access the funding available from the government.