The current pandemic has highlighted the importance of planning and managing cashflow to businesses around the world.
Keeping the cash flowing is critical for any business to survive and many businesses were unprepared for the impact of COVID-19.
As good practice, all businesses should regularly monitor cashflow and ideally prepare and maintain cashflow forecasts. These should be reviewed and updated regularly and thoroughly, preferably with the assistance of qualified professional.
As the government start to relax lockdown measures and start to open businesses, many organisations should take this opportunity to review their future plans including their cashflow for the recovery phase.
To help you, we have put together a quick list of 5 things you should consider when planning your next steps:
1. Check in with your accountant
It is likely that your cashflow is already being squeezed by a reduction in income together with additional expenses such as increased health and safety costs. A fresh pair of expert eyes may be able to assist you in evaluating your options more strategically and by identifying potential changes you can make to ease the pressure. Often a brief conversation with someone who understands the challenges you are facing can give you a fresh perspective or some new ideas.
2. Seek government support
The government have announced some of the following business support measures for all types of organisations to help them survive the pandemic and prepare for the recovery of their business:
3. Speak to your bank
The Bank of England have been working with banks to reduce interest rates for businesses and lending, expanding capital repayments timeframes and changing the terms of existing overdrafts. If you have been affected, there are support measures introduced for corporate borrowing and the need for loans below:
If you do need support via one of the government-backed loan schemes, we highly recommend speaking to your existing bank in the first instance as the process is likely to be much quicker. If you require assistance with any of the information the bank requests, again your advisor will be able to assist with the application process.
4. Expand your funding options
If your current bank is unable to assist or you wish to review other options, there are a whole range of other organisations outside of the high street banks who can offer support to your business. We work with a funding platform called Capitalise who have access to over 100 lenders in one digital marketplace.* We can assist you with obtaining funding quotes and navigating the application process.
5. Plan for your business’s future recovery
The COVID-19 pandemic is far from over, but as the government releases a step-by-step approach for business recovery, you should be considering your plans for the next few months. To help plan for the recovery of your business, you should update your cashflow forecasts to account for any potential additional costs, contingency cash, COVID-19 risk assessments, safety measures and economic predictions.
How can we help?
If you would like any more information or you’re looking to discuss any cashflow assistance issues, please get in touch with Matthew Green (firstname.lastname@example.org) or your usual Lubbock Fine contact.
*Capitalise.com Platform Ltd, trading as Capitalise, is authorised and regulated by the Financial Conduct Authority for regulated credit agreements. Capitalise is a credit broker not a lender.