Are you worried about cash flow?
Cash is king in uncertain times and now more than ever it is important that businesses effectively manage their cash flow.
Here are our top tips to help you deal with the challenges that you may be facing:
- Review your direct debits and standing orders to ascertain which payments are business critical.
- Determine whether your staffing levels are adequate and seek advice if you need to reduce the work force/hours. Consider utilising the Government’s new Job Retention Scheme.
- Understand what your debt obligations are (both for the business and the directors personally) and seek to negotiate payment holidays if appropriate.
- Seek rent payment holidays where possible.
- Speak to your customers to obtain payment dates for outstanding debtors – consider their ability to pay if agreeing to longer terms.
- Negotiate with suppliers to ensure your ongoing orders can be sourced and delivered; identify alternative suppliers for any business critical item.
- Ongoing funding is likely to be a concern for many. If you cannot demonstrate to a funder that you have taken the above steps then it will be more difficult to obtain. Now is the time to take action, even if you have a buffer that may see you through a short period. Contact your current bank/lender, for information on the Government’s loan scheme click here.
- Can you temporarily extend your overdraft facility?
- Contact your finance providers as soon as possible to discuss Hire and Lease Purchase payment holidays. It is always better to agree repayment holidays with your finance providers upfront as this should not affect your credit rating going forward.
- Are your vehicles off the road? Could you SORN them? Visit gov.uk/make-a-sorn to do so.
- Review your insurance cover
Consider reducing your level of cover to accidental damage, fire and theft if you are completely certain the vehicle(s) will not be manoeuvred or driven. If not, you should maintain full cover.
- Adhere to insurer requirements
Look carefully at your policy wording for any specific stipulations and follow any recommendations provided by your insurer, for example keeping your vehicle(s) in a securely locked compound.