The company, which has supplied drum equipment and technician services to musicians associated with some of the biggest names in the music business such as Red Hot Chili Peppers, Adele and The Script, saw a 90% loss in its income streams after gigs and concerts across the world were cancelled or postponed in light of COVID-19. The CBILS loan will replace this lost income and ensure the business can continue to trade throughout the coronavirus pandemic.
A small part of the loan will also be allocated to purchasing new machinery to develop services at the company's workshop, an area of the business that owner and founder Simon Jayes can continue to grow even whilst the crisis is ongoing. London Drum Company is now focusing on developing and protecting its servicing, custom shop and repair services, ensuring the business is in a strong position to support the UK's music industry when the government restrictions are lifted.
Simon Jayes, Founder and Owner of London Drum Company, commented: "Given the nature of work that I undertake, it's impossible to continue usual trading throughout the coronavirus crisis. Put simply, the CBILS loan from HSBC UK has saved London Drum
Company. It means I can keep the company afloat both during and after the crisis and protect the business I have been successfully growing for 16 years. I'm so thankful for the team at HSBC UK and to the government for implementing this scheme, which has been crucial to the survival of so many businesses."
Richard Gimblett, Area Director for Business Banking in London City, HSBC UK, added: "It's vital that every solid business has the chance to survive this extremely challenging situation, and London Drum Company is just one example of how HSBC UK has been supporting businesses with CBILS loans. With every business facing different challenges, it is important we tailor each package to give customers the best possible solution for their individual circumstances. In Simon's case, we were able to provide him with a solution to his lost income streams within a matter of days as well as allowing the business to continue with its growth plans, even at this difficult time."
The Coronavirus Business Interruption Loan Scheme is available for existing customers with a group turnover of up to £45 million. The Government guarantee will secure bank loans to viable businesses with a sound borrowing proposal, but which may lack adequate security.
For tips and advice for businesses around planning for any possible disruption, visit https://www.business.hsbc.com/novel-coronavirus