Coronavirus: Some UK businesses not getting the loans
Denying coronavirus loans ‘completely unacceptable’ banks told [LINK]
One huge problem for businesses, is the fact that not all make a profit, even though they are doing well, and banks seen to be only looking at profit. The same goes for the self employed [LINK].
They seem to be looking at net income rather than gross income.
By this, I mean that a business may be bringing in thousands of pounds, but may also have thousands of pounds worth of expenses.
So if a business is a website, it could be generating 2 million, from adverts or whatever. However, they may have 2 million of costs, such as servers, content and so on. They may plan to get x number of users to the site before the site makes a profit. However if you only look at the net profit, it may seem that the business is doing badly, or not very well.
Some will even operate on the basis of not making a profit, such as a cafe that employs the disabled or ex prisoners, where any profits made may be put back into the business or used to help people.
It seems that the banks are simply (I may be wrong) only looking at the net profits. This being the profits after all the expenses.