Codat to provide extra support for small businesses during these difficult times.
By Codat on 25/03/20
Original blog can be found here!
Codat’s mission has always been to make life easier for small and medium-sized businesses.
Tens of thousands of small businesses each month use apps, services and financial products that are powered by Codat – without them our business would not exist.
What is happening
Small businesses are predicted to be hit worst as a result of the COVID pandemic.
A significant proportion are likely to need emergency funding or some sort of life line from the government to tide them over if they are to survive.
The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.
This includes a package of measures to support businesses one of which is the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank.
This scheme is currently being delivered through 41 commercial lenders, many of which are Codat’s clients, and we will be helping them speed up the process of getting funds to the businesses that need them.
How we will help: Speed is key but so is accuracy
Speed is key for small businesses. Many will have a cash buffer of a month, sometimes even less which means they will need access to credit as a matter of urgency to keep them afloat.
Codat is working with key clients to build a fully white labelled application flow, allowing lenders to properly manage the influx of loans applications under this scheme and at the same time continue to make use of accounting integrations, allowing for faster and more accurate decisions in this time of need.
We want to ensure lenders to have real time access to both the small businesses accounting data as well as Companies House data, allowing for much faster lending decisions.
With the number of applications coming through, the need to automate data collection is more pressing than ever, and Codat can help achieve this in just a few days. This speed of lending will mean small businesses get the life line they need when they need it, protecting them and the entire UK economy as a whole.
But these fast decisions must also be accurate ones, by giving lenders access to up to date accounting data, both historical and present day, they can trust that they have a true picture of the small businesses’ financial health when assessing risk.
Codat will continue to support other providers who will likely play a pivotal role in assisting small businesses during this time such as cash flow forecasting services, giving the small businesses an accurate view of how to navigate through the next few months.
If you are interested in the details of what we’re doing to help, please do get in touch and we’ll be happy to help where we can. email@example.com