Covid-19: Quarter of logistics to collapse without better funding
According to FTA businesses from across the logistics sector, nearly a quarter of all logistics companies said they face potential collapse in the next eight weeks, with 80% needing better access to CBILS (Corona Business Interruption Loan Scheme) to survive.
“These figures are very concerning – businesses across our sector have seen a major decline in revenue, for some up to 100%. And these organisations have only survived thus far by deferring payments of VAT, PAYE, NI and asset lease payments. Mr Sunak told business he would ensure that the £330bn of government support promised to keep industry afloat would reach as many businesses in need as quickly as possible –
our message to him is that, for the logistics industry, the time for this support is now,’ says David Wells, CEO of FTA.
He continued by adding that applications need to be faster and more transparent.
FTA explains that with so many organisations wanting to access the scheme but not yet being counted in the number of applications, we can only assume the current quoted number of applications is so low because businesses have not managed to get past the banks to formally make an application.
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To date, I have not heard of a single business across logistics and supply chain that has been granted a CBILS loan, and time is fast running out for the industry charged with keeping Britain trading,” continues Mr Wells. “The Chancellor needs to take an urgent look at the processes in place and identify the roadblocks which are preventing vital funding from reaching those who are most in need of CBILS support.