Cashflow is more important than ever
As Lancashire emerges slowly from lockdown and businesses begin to reopen their doors, it is important to stress some of the immediate challenges they face.
A lack of working capital can not only hinder their recovery journey; it can have dire consequences on their ability to trade.
So, it is important business owners keep this foremost in their mind and keep a close eye on their cashflow.
Effective management and good, solid forward planning are key. Update your business plan and cash forecasts regularly – keep on top of your numbers. That includes tackling late payments and having processes in place.
There is also support out there for businesses as they look to unlock and start on their road to recovery and growth.
The government’s new Recovery Loan Scheme has been created specially to help businesses as they look to recover from the pandemic.
Once received, the funds can be used for any legitimate business purpose, including managing cashflow, growth and investment. Companies can apply for loans of between £25,000 and £10m.
Businesses can choose from term loans, overdrafts, asset finance and invoice finance.
Term loans and asset finance facilities are available from three months up to six years, with overdrafts and invoice finance available from three months up to three years.
Companies can apply for loans of between £25,000 and £10m, with the government taking on 80 per cent of the default risk.
There is also a range of funded business support available in Lancashire to help companies negotiate key issues including EU transition and resilience. Boost; Lancashire’s Business Growth Hub is the first port of call.
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