Protecting your business from coronavirus: Steps you can take
Coronavirus is not just a world health emergency, it is quickly becoming an economic issue. Stock markets are down. Companies are issuing profit warning and sectors such as travel and hospitality are clearly impacted.
Particularly following the Government’s announcement yesterday, more and more businesses now feel the need to ramp up preparation for how they are going to operate in the foreseeable future.
Your business may be affected by the ongoing effects of coronavirus, which may mean that your cashflow is adversely affected. If you have concerns that this may be the case, there are a number of things you may wish to consider. For example, whilst you may not be able to control when your debtors pay you, you can control what you pay out.
Potential steps you can take:
- Talk to your finance providers about taking a loan holiday
- Speak to creditors to get extended terms of credit
- Speak to landlords to arrange deferred payment terms
- Make sure you understand what you are spending and detail/plan your cashflow
- Consider your business contingency/continuity options
- Consider time to pay arrangements for PAYE and VAT
- Apply for the new government grants
- Apply for government business interruption loans
- Is there any capital expenditure which can be deferred?
- What discretionary spends can be reduced/postponed?
- Consider how to mitigate issues if staff need to self-isolate
- Can your staff work remotely?
- Make sure company HR policies are up to date and circulated
- Revise company forecasts and financial models (including cash flow) to identify any pinch points or shortfalls
Taking some or all of the steps above may make a significant difference to your business resilience during this volatile time. If you have any questions or need support regarding either managing cashflow, sourcing short term funding requirements, or setting up a remote working system, please contact DTE or one of our advisers today.
This article was originally published on https://www.dtegroup.com/.