New research reveals that businesses in 6 welsh authorities borrowed the lowest amount from the bounce back loan scheme (BBLS) and coronavirus business interruption loan scheme (CBILS) during the pandemic.
The study by Business Rescue Expert collated the total amount each devolved UK constituency has collectively borrowed under the BBLS and CBILS, as well as the overall number of BBLS and CBILS taken out by businesses based in that area, to reveal which UK nations and regions saw the most demand for COVID borrowing.
Despite being the second most eager bounce back loan borrowers, with 26.4% of businesses based in Wales took out bounce back loan, six welsh regions ranked in the top 10 lowest borrowers.
Rhondda was the lowest borrowing Welsh constituency and the 2nd lowest overall, taking out 749 loans, totalling over £20 million, which is over £1.5 billion less than the highest borrowing constituency, Cities of London and Westminster. This is not surprising as the area is located deep in the Welsh countryside.
Rhondda is followed by Cynon Valley which ranks in 3rd place. Businesses in the area took out 899 loans in total, borrowing over £3 million in covid business interruption loans and £22 million in bounce back loans.
Chris Horner, Insolvency Director with Business Rescue Expert, said: “The data gives a fascinating insight into the distribution of bounce back loan borrowing across the whole of the country. It’s especially interesting when you look at which areas have seen the most businesses borrowing and the amounts they have loaned.
“Based on the insolvency cases of the small businesses we’ve worked with this year, over 41% of them entered liquidation with an outstanding bounce back loan balance of £37,350 – higher than the individual borrowing averages of any location.
“No matter where a business is based, the important thing for them to remember is that they do have options if they’ve taken out a bounce back loan and think they’ll have trouble repaying it. By getting professional insolvency advice quickly, possibly before any potential problems appear, they will be in the best position to react and respond.
“After nearly two years of consistent decline, company insolvency figures are starting to rise once more and as support measures are removed later in the year, we’d only expect this trend to gather pace. It won’t happen at a uniform rate across the country, it will affect some areas more quickly and deeply than others. That’s why finding out more administration procedures and liquidation options now before circumstances force them to, could be the best call any business could make in 2021.”
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.