The role lenders play in enabling SMEs to achieve their potential cannot be overstated. Without their timely and strategic injections of capital, companies would neither be able to get off the ground nor have the necessary funding to grow, expand and invest.
Moreover, with KYC requirements and covenants, lenders play an invaluable role in keeping SMEs on track and focussed on their primary business objectives.
Simon Fry, Partner at ReSolve, the business advisory and restructuring house, said: When a lender is satisfied with its due diligence and signs a loan facility, it is in good faith that the SME it has invested in will achieve what it has set out to do. However, there are extenuating circumstances that can interrupt a business’s trajectory – and COVID-19 is an obvious culprit. The pandemic and ensuing economic uncertainty have rocked many SMEs, leaving them in an unexpectedly difficult position with a weak … Read the rest