Most suffered significant losses
LONDON, June 25, 2020 / PRNewswire / – The scale of the challenge facing UK small business owners recovering from the pandemic has been revealed by a study published by Amaiz, the merchant banking app, today. During their research (carried out for them by 3Gem), 10% of small businesses said they had lost all of their affairs as a direct result of the lockdown and a third said they believed the pandemic had been “very damaging”. However, most small businesses are optimistic about the future, with 59% believing it will take less than 6 months to return to previous revenue levels.
Although this is a minority that has lost all of its activities, the results show that most small businesses register significant losses: more than a third (35%) have lost more than 30% and almost half (48%) of companies lost more than 20%. This is compounded by their struggle to get payment from their customers, with almost one in three (31%) reporting having difficulty getting paid during the crisis and a quarter (25%) reporting having difficulty paying clients. suppliers.
Matt goddard, Head of Acquisitions at Amaiz, said: “Small businesses are the lifeblood of the UK economy. FSB figures show that in 2019 SMEs accounted for three-fifths of employment and around half of the total. UK private sector business. It is tragic, but not unexpected, to hear that small businesses have suffered so much during the pandemic. ”
While a small majority of companies (59%) estimate that it will take them less than 6 months to reach previous revenue levels, a quarter believe it will take at least a year to recover from the situation. impact of the pandemic and just under 5% believe they will never recover.
The Amaiz banking app was launched in March 2020, just before the pandemic, and helping small businesses by combining banking with accounting. The premium account is available at £ 9.99 per month. However, there is a free version that only charges 20p per outgoing transaction. The app comes with many unique features that allow business owners to quickly and easily manage their bookkeeping between clients. It is also possible to include a contactless card reader for low installation and transaction costs. To create their account, a business owner simply needs to download the app and then prove their identity and entitlement to work in the UK. There is no credit check so the process can be done from home very quickly.
Matt concluded: “As the government announces the easing of the lockdown, we hope it will listen to the needs of small businesses. Of course, lives cannot and should not be put at risk, as with Reducing social distance by two meters First, small changes can be made that will have a disproportionate impact on whether a small business can operate or must close permanently This is a critical time for many small businesses. At Amaiz, we will do everything we can to help you. We hope the government will do the same. “