Skipton Business Finance
Region: North West
Programme: Bounce Back Loan Scheme
With most of its customers forced to close as part of the Government’s COVID-19 shutdown, Liverpool-based CEG Packaging saw demand for its services diminish very quickly. Needing financial support to boost cashflow and secure jobs, the business turned to the Bounce Back Loan Scheme (BBLS).
Read what it had to say in this BBLS case study.
British Business Bank: Can you tell us what your company does?
Colin Graham, managing director of CEG Packaging: We are a family-run business that serves other businesses mostly in the North West. We manufacture all types of cardboard and paper packaging, and our customers range from small independent businesses to large-scale companies in the automotive industry, for example.
The coronavirus has affected a huge number of businesses across the UK. What problems were you facing as a result of the outbreak and what made you apply for BBLS support?
The Government shutdown meant the majority of our customers were forced to close, as they were deemed non-essential businesses. And being closed obviously meant that they didn’t require the packaging they would otherwise have needed if they were open and trading as normal. As such, our revenue and our cashflow was affected significantly.
How long did the application process take? Did you need any support?
We were able to complete our application in a few days. Our in-house finance department provided all the support we needed.
The Bounce Back Loan has allowed us to continue serving our current customers through the pandemic and supporting families by maintaining their employment.
Colin Graham, managing director of CEG Packaging
What advice would you give to other businesses that are applying for a Bounce Back Loan?
I’d advise putting together a cashflow forecast to establish what is the lowest amount of money your business needs to get through the pandemic. If you apply for a Bounce Back Loan and receive it, you’ll have to repay it eventually, and so having a full understanding of your cashflow is vital.
How has the Bounce Back Loan helped your business to weather the outbreak? And what might have happened if you hadn’t received it?
The Bounce Back Loan has allowed us to continue serving our current customers through the pandemic while enabling us to support families by maintaining their employment.
Without such financial help, the chances of the business surviving would’ve been slim. We’d have had to make staff unemployed and leave suppliers unpaid for goods we’d already purchased.