"It became clear that we also needed to consider new clients who are seeking funding assistance."
Specialist SME finance provider, Onepm Finance, has launched a new 'low start' repayment structure across its leasing solution.
Low Start has been designed to help SMEs manage the costs of key investments in smaller business assets during the Covid-19 crisis and beyond. The initiative allows business owners to obtain a lower starting option on their lease, making significantly smaller payments at the beginning of their agreement, for either 3 or 6 months.
Onepm are initially launching Low Start to its panel of asset finance brokers.
Additionally, 1pm plc, the parent company of Onepm Finance, has been approved for accreditation as a lending partner under the Government’s Coronavirus Business Interruption Loan Scheme (CBILS).
Becoming an accredited lender will enable 1pm to expand its lending to support any qualifying SME under the scheme.
SMEs with an annual turnover of up to £45 million can apply for a 1pm CBILS term loan. 1pm are now putting in place the processes required to start lending under the scheme and will confirm shortly the date in May when it will be ready to start receiving CBILS applications.
Under the scheme the government underwrites 80% of the outstanding value of the loan. The benefits of the scheme for SMEs include no upfront costs, no interest payments for the first 12 months, lower initial repayments and no personal guarantees are required.
Carol Roberts, head of asset at 1pm plc, commented: “At 1pm we recognise the significant impact Covid-19 is having on UK businesses. As with many of our peers, we have been busy supporting forbearance requests, but it became clear that we also needed to consider new clients who are seeking funding assistance. Our clients are reliant on our financial aid and backing which is why we felt launching our Low Start payment option at this time was the right thing to do. As a business we’re here to support SMEs as much now as ever.
"We hope that the launch of this new initiative will provide our brokers and their customers with reassurance and confidence that we are doing everything we can to support them during this time. We are confident that by working together, we can come out of this crisis.”
Ian Smith, CEO of 1pm, added: “Any future economic recovery is going to be dependent on getting Britain’s millions of small businesses back on their feet as quickly as possible. We are thrilled that the British Business Bank has approved us becoming a lending partner for CBILS. Since the crisis began our team has been working hard to assist any customers that need support. The ability to offer funds through CBILS greatly expands the support we can provide SMEs. We are looking forward to helping those businesses to access the cash they so urgently need.”