What this indicates is the sheer inability of the UK’s financial system to provide the support that smaller businesses need. The companies that have suffered these losses do not need loans: they need new capital to replace that which they will have lost. Some, to be candid, will not justify that capital injection. That will be because they have no business model left worth injecting funds into. If they were heavily dependent upon Carillion and there is no guarantee that those taking over that company’s contracts will continue to buy services from them that may well be the case.
But others will have the ability to survive if only they are not burdened with considerable new fixed obligations to service debt and any associated interest but could instead concentrate on returning their businesses to profitability and then pay returns when they have done so.
In other words, what these businesses need is an injection of new capital now. Let’s not get into the precise form that capital could take: that will vary from case to case, and anyway it’s hardly worth considering because there is no venture capital fund on hand to provide that funding.
No private capital at all in fact.
Bit of a surprise to me but there we are, the Senior Lecturer has pronounced.