Overcoming COVID-19 Business Credit Challenges
COVID has had a considerable impact on the UK economy, creating significant COVID-19 business credit challenges, especially when securing energy supply contracts. Certain industries, such as hospitality, leisure, tourism, and manufacturing businesses reliant on international trade, have been particularly affected, facing increased credit risks and financial strain.
The COVID Credit Crunch is creating a number of scenarios where suppliers are unable to provide businesses with the required credit, which has a knock on impact, with business typically being left with one of three options:
- They are forced to take out contracts with alternative suppliers that might not meet all of their objectives or requirements
- They are forced to pay security deposits upfront, where previously this wouldn’t have been the case
- They are having to accept paying premiums of up to 10-15% on their contracts.
Whilst it depends on the supplier, more businesses are now seeing a requirement for a case to be built on their behalf, in order to prove their eligibility for credit. If you find yourself in this situation make sure you work with an energy consultancy that understands your requirements.
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