How COVID-19 is Impacting Consumer Finance Firms in the UK

The global COVID-19 pandemic has had a dramatic impact on every single individual and business across the globe. The UK is one of the country’s that has been especially hard hit by the virus and the consequences thereof. As of mid-May 2020, there were over 244,000 confirmed cases and over 34,000 deaths in the country.

How COVID-19 is Impacting Consumer Finance Firms in the UKUK lockdown

The UK has been in lockdown since the 24th of March following a televised address by Prime Minister, Boris Johnson. The 23rd of March was when he first announced various restrictions regarding how and where people would be allowed to meet and interact. The lockdown has continued to evolve and become more and more stringent ever since then, leading to an increasingly high number of businesses being forced to close their doors.

The consequences

With so many UK companies and businesses unable to operate or trade, there have been several consequences of an economic nature. Countless Britons have lost their jobs, have been retrenched, or have been forced to endure a significant pay cut as a result of the lockdown. The virus and lockdown are affecting more than just small-medium enterprises. They are impacting big brand names, too. For example, it is estimated that British Airways will need to retrench up to 29% of its staff members to make up for its losses.

Unsurprisingly, despite the relief measures put into practice by the government, these consequences have led to many individuals scraping their pennies together to make ends meet. Some have had no choice but to turn to consumer finance firms to apply for loans.

Consumer finance firms struggling with the surge

Britons are now being urged to conduct plenty of research before applying for a loan with just any lender, as there are many out there who are taking advantage of people’s desperation in relation to the COVID-19 outbreak. It is recommended that they look to friends and relatives for advice concerning which consumer finance firms are safe and reputable. An excellent example of one of these firms is Cash Lady. Consumers can apply for short term loans from Cash Lady to help ‘fill the gap’ when money is tight without plunging into a long-term repayment contract unnecessarily.

Consumer finance firms across the UK have been hit with a massive surge of loan applications. According to data recently published by a popular UK bank, businesses in the UK have borrowed record sums over the last few months, and consumers had cleared a jaw-dropping £3.8bn worth of debt by the beginning of May.

Obviously, this unprecedented demand for financial relief has resulted in many consumer finance firms scrambling to deliver – and this struggle is not the only challenge with which both finance firms and UK locals are faced.

Despite the lockdown playing a vital role in helping to curb and control the spread of the virus, the UK, like so many other countries, has been unable to escape the resultant economic difficulties. Only time will tell how quickly this resilient island nation will bounce back. Until then, the government and the many consumer finance firms will undoubtedly continue to provide relief to citizens as best they can. Amid all the uncertainty, one thing remains for sure. This too, shall pass.