Some green shoots of optimism for Moray businesses but still Covid-19 pain
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SMALL businesses who have had to furlough staff and stop working admit the uncertainty is the biggest worry for the future.
Tony and Andrea Mone are directors of an Elgin-based painting and decorating business which Tony (50) started 28 years ago.
They employ 12 painters, who they are looking to place on the Government furlough scheme.
They have continued to pay the men weekly since business ceased on March 23 and it will be April 20 before they are able to apply for the furlough payments from the Government.
Andrea said: “It is the unknown at the moment. The longer it goes on there are going to be bigger problems.
“If we knew how long it was going to last we could look at finance and budget for it. There are loans available but some banks are making it more difficult than others and you have to go through the normal loan system before you get an emergency loan.”
Tony added: “We have built up the business over the years and have 12 staff, most of whom have been with us a long time. You want to be able to keep them but at the moment we are a business with no income.”
The added concern for the couple is that as directors of a limited company, they are not classed as self-employed and only pay themselves a small salary each week, with most of their earnings coming from dividends which are not currently covered by any Government help scheme.
Bob Alexander, who lives at Mosstowie, runs a garden maintenance and landscaping business, employing five men.
He is hoping to get two of them back to work doing grass cutting, following updated Scottish Government advice, while retaining the others on furlough.
“Cash flow is the biggest worry,” he said. “I could probably manage two months, three months at a push but I don’t have oodles of cash in the business.”
Applications for the job retention scheme open on April 20 but it is unlikely busiensses will see any of the money until June.
He is in a similar position to many directors of small limited companies in that he derives most of his income from dividends and not a salary, and the job retention scheme and help for self-employed does not apply to people in his position.
And with lockdown now extended by at least another three weeks, the pressure on the economy will intensify.
