British banks will help their clients cope with the consequences of the coronavirus
UK banks start lending to businesses showing signs of financial strain amid coronavirus outbreak.
Major lenders including Barclays, Santander UK and Royal Bank of Scotland have begun contacting thousands of clients in recent days to see if they are betting production disruptions in China endangering their supply chain and cash flow.
Barclays has commissioned 1,500 managers to reach out to clients at risk and has since signed the first batch of overdrafts and short-term loans designed to facilitate financial situation provoked by the coronavirus. These include cases where Chinese shipments have been seriously delayed or payments have not been received from customers in under quarantine abroad.
«We are ready to help with the management of financial flow or assist in solving other problems. Each of our clients who need help can call the bank directly or contact their personal manager», – said Ian Rand, chief executive of the Barclays business unit.
RBS is also known to try to reach approximately 5,000 of its clients and offer similar financial assistance packages on an individual basis..
RBS and Barclays there are over a million corporate clients throughout the UK.
Although the number of UK companies applying for urgent financing is considered to be quite small, it is expected to increase in the coming days.. Many small business customers used additional supplies that were stockpiled in preparation for the Chinese New Year holidays. The real effect of the delay in deliveries will begin to manifest itself after these stocks run out..
«We monitor the potential impact of the epidemic on our clients to ensure they are properly supported at all times. We have a wealth of experience working with entrepreneurs whose business suffers from reasons beyond their control.. We also have operational plans to ensure sustainability and ensure that we can continue to serve our customers.», – said a spokesman for RBS.