Bath-based specialist finance provider 1pm has joined calls for the government to let non-bank lenders like itself join funding schemes aimed at helping businesses cope with the impact of the coronavirus pandemic.
While such lenders provide a third of all UK consumer credit and a third of funding to businesses for investment in plant, machinery, equipment and software, they are not taking part in the government measures to free-up funds to help businesses survive the crisis. 
1pm said, together with other companies in the sector, it was actively lobbying to request changes and extensions to the government’s funding initiatives to include the non-bank lending sector.
This would enable 1pm, and the sector as a whole, “to provide additional support to UK SMEs throughout this period of economic uncertainty”, it said.
1pm, which is listed on the London Stock Exchange’s AIM market, added it was not possible to say what the impact of the coronavirus (Covid-19) outbreak had been be on its own finances so far.
“1pm has been trading in line with market expectations for the current financial year through to the end of the third quarter, February 29,” it said in an update issued to the Stock Exchange.
“Given the rapidly evolving nature of the pandemic and the current lockdown of the UK, it is not possible to quantify the impact that Covid-19 may have on the company’s financial performance in the final quarter of the current financial year.
“Furthermore, given the uncertainty over how long these conditions will prevail, the company is no longer in a position to provide guidance on expectations for its financial performance in the next financial year.”
It said as a consequence of such general and widespread uncertainty, together with the short-term need to conserve cash resources to maintain service and to give continuing support to UK SMEs, it would defer a decision on the amount and timing of any final dividend for its current financial year “until the market situation and the effect of Covid-19 have become clearer”.
1pm said many of its borrowers were requesting payment delays, holidays, or “similar forbearance” as they adjusted to substantially no footfall or sales revenue in their own businesses.
It said: “1pm has always dealt with borrowers on a case-by-case basis and is adhering to this operational principle as the group handles a large volume of in-bound requests for support. 
“Payment holidays and the rescheduling of lease and loan agreements, as well as further advances within existing facilities to invoice finance clients, are being agreed on a case-by-case basis where justified.
“Such new arrangements include circumstances where the company’s own lenders, such as British Business Bank, have agreed to corresponding forbearance on the company’s own facilities. 1pm intends to continue to support credit-worthy customers and businesses to ensure they have the opportunity to resume normal trading at a future date.”
It said the crisis would result in a substantial constriction of its short-term cash inflows from receivables but added that it had a strong balance sheet with “ample operational liquidity and covenant headroom”, with committed facilities at least through to the end of this calendar year, and in most cases for longer, from a number of large UK banks.
The said its lenders were unanimously supportive of the group and continued to provide funding for new business.
It remained open for new business and would continue to lend “albeit on temporarily tightened and restricted credit criteria”.
1pm said it had put in place new working capabilities to ensure it was ‘business as usual’ with all 190 employees operating remotely and was committed to remaining open for new business to support credit-worthy SMEs looking to access funds to help them through this time.
1pm COO Ed Rimmer, pictured, said: “As we move through these difficult and unprecedented times, our mission remains the same: to deliver financial solutions to British businesses that make a difference and inspire confidence.
“We understand the challenges SMEs are currently facing and we continue to look at supporting SMEs on a personal, case-by-case basis, enabling us to deliver the right funding solution at the right time.”
“We are doing everything we can to support our existing clients as they navigate through the challenges they face as a result of Covid-19 ensuring that their funding solution continues uninterrupted.
“We recognise that every business is unique, which is why our expert teams are working closely with each business to identify and tailor what support is needed to ensure they continue to have the cash flow to trade in these tough business conditions.”
1pm’s share price has tumbled over the past few months as markets have reacted to the pandemic. Its shares, which were trading at 37p in mid-January fell to 28p in early May and today opened at 12.5p.
