With many business energy contracts due for renewal in the Autumn window many will be shocked at how COVID-19 has reduced the options available to them when it comes to choosing both suppliers and contract terms. Although wholesale prices have fallen in the last 4 months suppliers have been looking to protect themselves from debt and risk sectors which is leaving many businesses wondering where to look for their next contract.
As of the 4th May 2020 Micro-businesses and SME’s will be able to apply for the Bounce Back Loan Scheme which can offer up to £50,000 within 24 hours. The criteria set is almost self-certifying with little checks being carried out by the banks and all loans are interest free for the first 12 months with the balance likely to be charged at a rate of 3% which is around half the rate set in the Coronavirus Business Interruption Loan.
In the main, the Bounce Back Loan Scheme will work as follows:
Gas and Electricity suppliers are continuing to revise their business models to protect themselves from the impact of COVID-19. We are expecting changes almost on a weekly basis in the medium term.
With many businesses being forced to close their doors due to the impact of the Coronavirus many suppliers are changing both their terms and conditions and credit criteria on an ongoing basis.