Opinion

Why haven’t more travel companies gone bust? Well there’s the furlough scheme, which has reduced overheads and given management an incentive to go on. They can pay staff something for a longer period and protect them as much as possible.

There are refund credit notes, which have allowed many travel companies, so far, to avoid paying out large scale refunds at this stage – customers are continuing to make balance payments too for fear of defaulting and losing their deposits so there is still cash flowing in.

A great many companies in the travel industry – my company C&M Travel Recruitment included – have placed a large number of employees on furlough. For many of us, this scheme could be the difference between having a potentially thriving business in a few months’ time and ceasing trading altogether immediately, so we must ensure we don’t waste this vital lifeline.

During this time of uncertainty, it is important we make sure our companies are in the best place they can be when “normality” resumes – both from a financial perspective and staffing point of view.

A new 100% government-backed loan scheme was announced last night for small businesses, up to £50,000, and interest-free for the first year.

Previously I’d said that the government lending schemes came with a bit of a sting in the tail, in that they required 20% security.