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Last updateThu, 14 May 2020 1pm

Keeping SMEs on track as British Steel goes into insolvency

by Steve Noble, COO at Ultimate Finance

Rescue talks between the Government and Greybull, the owner of British Steel, have collapsed, with headlines highlighting the terrible impact the insolvency will have if a new buyer isn’t found. Whilst the Government continues to consider an alternative plan, 5,000 jobs are directly at risk while 20,000 more depend on its supply chain.  The knock-on impact to the local area will also be significant. 

As the organisation goes into insolvency, the next steps remain unclear for companies that regularly sell their products and services to British Steel, and those businesses that are reliant on the steel for their own operations. Reports suggest the company had been seeking a £30million loan from the Government to help pay their suppliers, raising concerns for the businesses who are linked to the firm.

We know that a range of support is essential for SMEs as they face the challenges of insolvency in their supply chain or a failing trading partner. The Brexit stand-off has tested the resilience of SMEs up and down the country, leaving many organisations from large to small unable to properly plan for the future.  

In the same week as Jamie Oliver’s restaurant group has closed its doors, we urge businesses to use the situation as a reminder to review their cashflow and update their debtor risk plans. Good funding providers are here to help when challenges and opportunities arise and when access to funding is required. We look at the individual needs of every business to assess what the right support may be so that organisations of all shapes and sizes can benefit from fast, flexible and fair access to funding.  

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