It’s fair to say the landscape of the world has changed a lot in the last two months, and finance options for startups and businesses are no exception to that.
Transmit Startups’ sister brand, Transmit Growth Loans, has been delivering the Government’s Coronavirus Business Interruption Loan Scheme.
More recently, Bounce Back Loans were brought in, delivered by the major banks, and providing quick, low cost loans to businesses already trading – and that raised some questions about the positioning of Start Up Loans, open to businesses up to two years old.
The Start Up Loans scheme continues unchanged, and we’re still seeing high demand for loans – application numbers haven’t dropped off, they’re actually increasing week by week.
Specifically, we’re seeing demand from new startups who can’t access finance elsewhere (often they’re not an existing business customer of a mainstream bank) – and who recognise the value in the advice and mentoring that we provide along with a Start Up Loan. People on furlough/newly unemployed are using this time to develop ideas into the business they’ve always wanted to start.
There is, in some cases, a hesitancy in drawing down a loan once they’ve been approved, though, and whilst that’s understandable it’s important that applicants understand the impact of delaying – a second credit check recorded on their file, new bank statements, and so on. So, please remind your clients that they can get a three month repayment holiday, for both capital and interest, from the outset.
We expect to see considerable levels of increased demand once we get into the economic recovery, as startups become an even bigger priority for the Government – we’re getting ready to push hard when this comes, so be prepared!
Your Transmit contacts
We're expanding our team so some of your contacts may change a little.
Account management: Daniel Stephenson
Invoicing, enquiries: Chelsey Etherington
Application processing: Mandy Corr