It feels strange to look back just a few short months, celebrating bringing in 2020, and thinking the worst the year would probably bring were more fires raging across Australia. This was followed swiftly by the floods and the destruction that followed in Britain. How wrong I was!
Never in any of our wildest dreams could we have imagined that less than two months later we would begin planning and adapting our working and personal lives so drastically due to the spread of COVID-19.
The outbreak of the COVID-19 pandemic, and the subsequent societal restrictions enacted by governments to combat this crisis, have brought great uncertainty to the international economy, and have placed many businesses into uniquely challenging situations. Whilst there are without a doubt parallels with the global financial crisis in 2008, there are also telling signs of adjustment and proof that some key lessons have been learned. Unlike a decade ago, we are seeing a greater show of community spirit, values and support and a far more empathetic and economic response from our Government towards businesses and communities alike.
For ArchOver this has presented two key questions – how do we best protect and help our existing Borrowers and how do we support and give confidence to our Investors? ArchOver has been in constant contact with all of our Borrowers throughout the pandemic to ensure they are effectively supported over this period. With a diverse portfolio of Borrowers, some businesses will be better positioned to handle the forthcoming challenges than others. However, ArchOver is pleased to report that many of our Borrowers seem well placed to weather the economic turmoil and for some there are genuine opportunities for growth, such as those experiencing increased demand from the NHS supply chain.
Investors faced with the ever-growing economic uncertainty caused by COVID-19 are seeking security with favourable returns, but over a shorter term. Actively supporting the portfolio, ensuring interest payments, and where appropriate, capital repayments, are made and preserving capital is where ArchOver can support.
Whilst ArchOver is just a very small cog in the system, we continue to do all we can to help our Borrowers and our Investors whilst we ourselves adapt and fight to thrive in these ever changing and unchartered waters. Waters may be choppy but under the surface, opportunities are awaiting.