Don't punish firms who took payment break, says Dawsongroup

Businesses that accepted a coronavirus ‘payment break’ should not be penalised when seeking funding, according to Dawsongroup Finance.

The asset finance company said it had been approached by a number of companies seeking funding after their current finance provider rejected their applications.

This is despite the fact that payment breaks were widely offered across the asset finance industry.

Dawsongroup said accepting the three-month payment holiday was “simply sensible cashflow management” in the midst of an unprecedented economic downturn and penalising businesses was preventing the UK from making an economic recovery.

Kevin Wills, Dawsongroup Finance commercial director, said: “We were surprised to hear from a number of businesses that a three-month payment holiday has been seen by some finance companies as adverse credit information – even by lenders who offered the payment break in the first place.

“For businesses now trying to take the positive steps they need to in order to re-establish and build their businesses, this can be a massive obstacle – and we’d like to reassure them this stance is not one we share.”