Covid-19 Business Support Resources

Coronavirus Finance Support

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Get credit, interest-free, backed by the government

Since the outbreak began the UK government has announced an unprecedented package of measures aimed at supporting businesses through this crisis. This includes policies focused on maintaining business liquidity. Details of the Coronavirus Business Interruption Scheme, designed to keep businesses going.

But don’t be fooled, the current system requires that you have the financial information before the crisis in order to demonstrate that you were a viable business beforehand.

All banks are asking for your financial such as forecasts to demonstrate what has happen to the business before and currently and what you think the future looks like, couple this to a schedule of your personal assets that they can use as security. So it’s vital that you can demonstrate your business situation and it’s likely viability. You can access forecasting for your business the Cashflow Creators and Modus Business Support.

Chase late payments, its key that you stay on top of outstanding payments to you.

Businesses, chasing payments from debtors can be time consuming, even awkward. Burying your head in the sand won’t do you any good, particularly when coronavirus is impacting your sales. Payment terms should be set out clearly in your contracts, and you shouldn’t be afraid of chasing up late payers.

It’s fair to say that it these current times it might be harder than usual to chase payment, but this should not stop you, if you need advice and or assistance please ask the team here at Cashflow Creators or Modus Business Support.

Everything right now is negotiable, especially when speaking to your creditors

We’re all in this together and it’s the most unusual time ever in business. Whilst it’s always best to negotiate up front, these are unprecedented times. Creditors may well be more likely to understand if you are unable to repay at the rate you previously agreed. Your business ceasing to trade isn’t good business for them either, so don’t be surprised if they’re willing to be flexible. They know it will pay off in the long run so be upfront and work out a plan for you and them.

Incentivise early payment, you might be surprised

Many businesses have found success encouraging early payments from customers by offering discounts for paying up front. This provides a quick cash injection when you need it, as well as rewarding good debtor behaviour with a discount on costs is well worth considering and might be the vital ingredients that you need to get cash in and stock pile it to get you restarted.

Don’t rely solely on the Government as no one knows if this will be the actual support we need nor if it’s going to apply to you. Take control of your situation as the Government can’t be rely upon.

Whatever you do, try not to access funding you can’t or will struggle to pay off, cutting costs to the bare bones is essential.

Although there seems like the Government will prop up everything, it’s not a given. Being in control of as much as you can through cost cutting and delayed payments even if this is based on you amortising it over a longer period when you get started.

The Government loan is not a free one, you will be required to pay it back, it’s only interest free, not a free loan and at some point you will have to pay it back. With that you need to reduce you outgoings substantially and ideally cut costs to Zero if you can. 

Managing SME cash flows in the context of coronavirus 

Many trade associations and business groups are posting helpful information about managing cash flow during the coronavirus outbreak. To save you some time, we’ve produced a list of the best pieces of advice, guidance and information on keeping your cash flow positive over the coming weeks and months.

Learn more about which measures can help solve your cash flow problem

The Federation of Small Businesses (FSB) is collating and publishing lots of information about the help available to businesses during the outbreak.

Here’s the Link: https://www.fsb.org.uk/campaign/covid19.html

Take action on late payment with a step-by-step guide to dealing with unpaid invoices – you are still owed money try and collect it.

Right now, the last thing you need is debtors dragging their heels on late payments. While your customers will be impacted by coronavirus too, persistent late payment for goods and services already delivered can turn your cash flow negative overnight.

Forecast, forecast, forecast, you most get your forecasting right and in place. It’s essential to know you position.

The best way to prepare for the impact of coronavirus is to make sure you properly understand it. Use your existing cash flow forecasting software or follow, don’t leave this a build one if you don’t have one or access one through Cashflow Creators or the Modus Business Support service.  

Learn from your peers, and remember their advice once we’re out the other side this will ensure you pick up speed and get back on tract fast.

While these tips are essential for dealing with the impact of coronavirus on your business right now, they also form part of day to day best practice on cash flow management for your business, make sure you get your cash flow forecast in place now as these are all important for your recovery and long term business interests. There’s never been a better time to get your business in order than right now.

Here’s the Link: https://www.fsb.org.uk/campaign/covid19.html

Contact Modus Business Support or Cashflow Creators if you need a done for you cash flow or business forecasts.

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