Letter to the editor: 'Our debts are killing us' says Pan'Artisan

17 August 2022 by
Letter to the editor: 'Our debts are killing us' says Pan'Artisan

David Jones, managing director, Pan'Artisan writes to The Caterer and calls for support and extension on debt repayment.

"Dear editor,

I am sure I am not alone in our industry in wanting to understand what pressure, if any, is being applied by the bodies than can lobby Government on our behalf; repayment of Covid loans and the rising cost of energy are already crippling and this latest increase to the base rate will certainly see many businesses go under.

BBLS (Bounce Back Loan Scheme) and CBILS (Coronavirus Interruption Loan Scheme) were designed to support businesses that were impacted by the government's decision to enforce lockdowns or restrict trade during the pandemic. They are now a noose around many businesses' necks as we have no headroom to pay them off or to borrow money to invest.

The government introduced Recovery Loan Scheme that was ‘designed to support access to finance for UK businesses as they look to invest and grow' but banks will not lend due to existing borrowing from the CBILS - this is madness!

We have just had a record sales year, despite being severely hit by Covid, which proves we have a solid business model, but our debts are killing us. CBILS were introduced in May/June 2020 when the world was a vastly different place; there was no war in Ukraine, inflation was under control and Brexit had not impacted. We have only five years to pay back our loan. Given the environment we find ourselves in now, the term needs to be reviewed to allow companies like us, who are clearly doing well (from top line sales), to pay it back over a longer period. Incidentally, our bank blames the government for restricting its flexibility.

And remember, this is a debt through no fault of ours, yet we are being strangled.

Then there is the cost of energy. All we all read about is the capping of our personal energy prices but there are no caps for businesses. So a food production business like ours, that has a heavy energy usage, is looking at increases in excess of 243%! Yes, that is 243%. Add this to increases in inflation, CBILS and the war in Ukraine, every week we are battling to stay afloat. Despite a ‘record' sales year."

Sincerely, David Jones, managing director, Pan'Artisan

Image: Shutterstock, Stock Photo ID: 1323065042

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