Professional services consultancy Begbies Traynor has launched a regularly-updated, online Coronavirus business help centre.
The company’s experts have outlined a number of measures business can take to cope with emerging situation and cash-flow threats posed by Coronavirus:
So how can your business cope from the imminent financial impact of this coronavirus?
Talk to your business support network
Your business insurance might provide the cover you need if your business has to stop trading indefinitely. Check your policy wording as you might have Business Interruption cover in your commercial insurance policy – speak to your insurer if you’re not sure. Once you have confirmed that you have Business Interruption cover, you will need to check whether you have an extension for “notifiable diseases”.
Talk to your bank about possible emergency finance options. The British Business Bank is in the process of setting up the Coronavirus Business Interruption Lending Scheme which will provide your lender with a government-backed 80% guarantee against the outstanding facility balance – so the finance should be attainable for all businesses.
Ask your customers – particularly larger companies – to pay their outstanding invoices. Morrisons supermarket has led the way with this by paying 3,000 suppliers instantly, regardless of payment period. Small businesses or the self-employed with invoices issued should use this moment to chase for instant payment.
Talk to the Government through their business support helplines – 0300 456 3565. They are designed to help small businesses with advice on how to minimise/cope with the impacts of coronavirus.
Ask your landlord for some breathing space if you’re experiencing a drop in trade which is impacting on your ability to pay the rent. Landlords might take a generous approaching in these extenuating circumstances by providing rent breaks and/or payment discounts.
Take time to understand the options available to you and your business if cash flow worsens and the business becomes insolvent; that means there isn’t sufficient funds to pay bills as and when they fall due – such as suppliers and HMRC. Speak to one of our licensed insolvency practitioners completely free of charge and find out what options might be available to you.
Talk to a ‘Time To Pay’ specialist that can defer your tax payments to HMRC. When cash flow problems arise, companies often struggle to pay corporation tax, VAT, and/or PAYE on time. Thankfully, HMRC has already announced that they are waiving late payment penalties and interest for missed tax payments, but you should make every effort to get Time To Pay in place rather than assuming the Revenue will provide automatic breathing space.
Free specialist advice on any aspect of business rescue, turnaround, or possible recovery methods is available from Begbies Traynor on 0333 009 6852. The online Coronavirus help centre can be found here.
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