Cash is the oxygen that is going to keep your business alive. It’s essential to have a clear plan for managing it, especially when you don’t know what’s around the corner.
Your first focus should be easing cash flow pressures on your business during this time. We’ve put together some resources to help.
Your first stop for help improving your cash flow is to consider deferring your tax payments to HMRC. If you have upcoming payments for VAT, Corporation Tax or PAYE, we’ve put together a short guide showing you how to do this.
A lot of businesses are also entitled to a grant payment of £10,000 under the Business Rates Payers Scheme. This amount is more if you’re a hospitality business. Look at holding off your business rates payment while you check with your local authority to see if you are eligible for any of the concessions. Different councils have different procedures to apply and receive it. If you haven’t heard from yours yet, please give them a call.
There are lots of questions about how you can access funding right now. In summary, our advice is:
We’ve looked at each of these recommendations in detail here. We can help you get together the information you need, so you’re in the best possible shape to make an application.
The government has put systems in place to deliver access to loans and grants. In reality, it may take weeks until the cash hits your bank account. If you need a cash injection within the next six weeks, our advice is to seek alternative funding as soon as possible – Swoop is a good option to apply for alternative finance – both CBILS loans and other options. You can use this link to create an account and start a quick search which will match you with suitable funding providers.
How can I get funding?
Approach your landlord about a rent holiday or deferment. There have been a lot of businesses that have negotiated with their landlords. These businesses have successfully negotiated a three month rent holiday. Could you? At the very least, see if you can pay your rent monthly, instead of quarterly in advance.
Your landlord may have received a grant through the Business Rates Payers Scheme mentioned about. Depending on the type of contract that you have with your landlord and what the deal is with rates, a reduction in rent may be passed onto you. It is worth asking them if they have received the grant payment and whether a reduction in your rent will be passed onto you.
Track your cash flow at least weekly – if not daily. We’ve put together this simple cash flow monitoring tool to help you track when you expect to get cash in and when you expect to pay cash out.
It’s been designed to be used to provide you with clarity of thought in challenging times, through simple assumptions and approximations. It covers a 90-day period only, as it is intended for short-term use.
It deliberately compromises on detail and completeness, to gain speed and simplicity. It’s a framework to gather your thoughts and put the most important parts of your finances into perspective.
Cash flow monitoring tool
In times of uncertainty, it’s more important than ever to get to grips with the numbers in your business. The good news is that you don’t need to be an accountant to have the key information you need at your fingertips.
If you’re worried about your personal finances throughout this time, our key recommendations are:
Our financial planning team has put together some other tips in key areas to help your personal finances.
38 Financial Planning TipsThere are so many great apps out there that will streamline your finance function, help you manage your time more efficiently, and do things while you sleep.
If there’s anything else you need help with not listed above, please ask, and we’ll find a way.
The resources contained in our Support Hub are intended to help you and your business and are no substitute for professional HR & legal advice. Each business is different and you should get professional advice relating to your specific circumstances. If you’d like to be put in touch with someone, please let us know.
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