Scottish company receive cash flow support from banking giant to help mitigate financial impact of Coronavirus.
Times may be tough right now, but one business which has enjoyed a financial boost in recent weeks is Coffeepots Limited. The Motherwell-based company has secured significant funding from HSBC UK, through the Government-backed Coronavirus Business Interruption Loan Scheme (CBILS). Directors at Coffepots are certainly feeling more optimistic about the company’s immediate future, after being granted a ‘finance facility*’ worth £600k from HSBC.
This will help the North Lanarkshire business to stabilise its operations, having been forced to close 13 cafes across Scotland’s central belt for up to four months, following lockdown. The much-needed cash injection means Coffeepots will now be in a position to open Cumbernauld’s first drive-through coffee shop early next year. This exciting new venture is expected to create 25 jobs for the local region.
Pat Dunese, one of Coffeepots‘s co-directors, said: “Our plans for growth were put on hold when Covid-19 hit. Our income suddenly ground to a halt, but the support from HSBC UK has provided us with much-needed cash flow. It helps us to continue paying our overheads and progressing plans to open new sites in Scotland.”
Pat has a 50% share in the business, with Colin Wilson owning the other half. Among the company’s assets are six Costa Coffee franchises in Scotland. And Coffeepots are also planning to open a second drive-through Costa Coffee in Peterhead next Spring, a move that would create a further 25 new jobs. HSBC UK is currently working closely with the Government and UK Finance** to identify emerging issues, as well as help customers and businesses receive the support they need.
Grant Bett, Relationship Director with HSBC UK, explains: “The hospitality industry was hit hard during lockdown and we’re pleased to be able to help Coffeepots, as they look to the future and embark on their plans for growth. We’re committed to supporting UK businesses during this period of uncertainty.”
* – A Finance Facility provides access to finance (sterling) and can be a loan agreement, an overdraft agreement, a credit card account, a hire purchase agreement or a finance leasing agreement.
** – UK Finance is a body which represents more than 250 firms across the banking and finance industry. Their aim is to enhance competitiveness, support customers and facilitate innovation.
About HSBC UK:
HSBC serve approximately 14.5 million customers across the UK, supported by 32,000 colleagues. They offer a complete range of retail banking and wealth management to customers, as well as commercial banking facilities for companies of all types – whether small or medium sizes businesses (SMEs), or large corporations.
For tips and advice for businesses visit www.business.hsbc.com/novel-coronavirus
Business support helpline
To contact the Coronavirus helpline, which connects callers directly with trade finance specialists, you can ring 0800 783 1300 (Between 9am and 5pm, Monday to Friday).
Other post-lockdown changes by HSBC UK include:
- £5bn allocated to help businesses that need support.
- The £100 Small Business Loan fee has been removed to relieve pressure on SMEs across the country.
- Repayment holidays may be offered to free up cash within businesses.
- Extending repayment terms on loans for companies involved in the supply and manufacture of ventilators. They will also offer similar terms to clients involved in the wholesale of food.
- £3bn allocated to assist importers and exporters that need additional support.
For latest news and updates, visit the HSBC UK newsroom at: www.about.hsbc.co.uk/news-and-media
