Scots SMES see major damage to revenues

Nearly a quarter of small and medium-sized enterprises (SME) in Scotland have lost more than 70 per cent of their income due to Covid-19, with the average firm losing about a third, according to Aldermore.

The lender also found that 5 per cent believe that the health of their business has already been damaged long term.

Steps SMES have taken to reduce spending include furloughing staff (15 p er cent) and applying for a Corona virus Business Interruption Loan (11 per cent), while more than a third have adjusted their business plans to reflect the “new normal”.

Meanwhile, SMES across the UK have had to tear up business succession plans due to the pandemic, according to separate data from Nucleus Commercial Finance. It said that prior to the pandemic, more than a third aimed to sell their business in the next two years, but many have had to shelve their plans.

Of those who were looking to sell their business, a quarter have put plans on hold because their finances have been hampered.