I, and I don’t think anyone else claimed anything was remotely approaching “rosy” far from it we’re just decrying this for the chunts trick it is! If they have to ”borrow” 10% off low paid staff for only three months how much do you think that will save them? All the while ( how many times do we have to repeat this) taking on mortgages or leases in some of the most expensive places around!
If they desperately need such a relatively small amount do you think they’ll be around to repay the “loan”?
Reading what I‘ve written do you really think the banks would be the bad guys for not approving a loan? They’d probably chase them out of the office with a bluddy big stick.
It might save them half a million quid, of pure cashflow. Without positive cashflow, even a good business can fail extremely quickly.
The leases and mortgages they have took on, have meant they have probably took on 20-50 staff per location, too. If you bin the expansion, you bin the jobs too. That would have been say another 200, on the dole, rather than on furlough.
And yes, if they're saying they can pay it back, I would assume they can, if they can't then the staff don't have a job, which is a much bigger problem than losing/ lending 10%. Lenders will look at them more favourably if they go back to trading well over summer (which they will, although probably worse now, with the bad press).
Banks don't want risk now, that's up to them. But if the banks don't want to lend then there goes 500 jobs. What then?
Also, if it's purely for short term cashlfow, banks may be reluctant, as they like to fix loans against assets, so that if it all goes t*ts up, then they have something to take. I expect all their property will be leased or mortgaged, so they may not have much to loan against.
The daft thing is, if they wanted a loan for a digger (that would be of no use to them), then they would probably get it.