London-listed 1PM (AIM:OPM ) has been accredited as a lending partner under the Government's coronavirus business interruption loan scheme (CBILS).
The Bath-based group will be able to expand its services in the form of leases and loans to small business customers across the UK impacted by the Covid-19 pandemic.
“Small businesses are the lifeblood of the UK economy and 1pm is pleased to be able to assist where we can during this critical time,” said James Roberts, CFO of 1PM.
In addition to the scheme, the Government will also be making a “business interruption payment” to cover the first 12 months of interest payments due and charges levied.
It is anticipated that, following a short period of preparation with British Business Bank, 1PM will be in a position to commence lending under CBILS during May 2020.
Shares in 1PM were trading 9.52% higher at 17.25p during Tuesday afternoon.
As common in the non-bank, specialist lending sector, 1pm has seen a number of existing borrowers requesting payment delays, holidays, or similar forbearance as they adjust to substantial losses of revenue.
To date, the group has received forbearance requests from around 25% of its borrowers, representing around 15% of the group's portfolio by value.
The Board has confirmed, however, that 1pm has ‘a strong financial base’ to operate from with a robust balance sheet with net assets of £56.1m recorded as at 30 November 2019.
1pm said it will continue to support credit-worthy customers and businesses so that they can resume normal trading at a future date.
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