Are you facing a Covid-19 Cashflow crisis? Milsted Langdon provides some guidance.
If so you are not alone and you may have more options than you think. Few businesses have sufficient cash reserves to be able to survive an extended period during which their cashflows are disrupted. As business-owners around the world are starting to discover, Covid-19 is beginning to give rise to just such disruption. Read the full article here: Are you facing a Covid 19 cashflow crisis
Other things BLS Members might wish to note:
1. For most SME businesses, the most valuable support is likely to be from the Business Interruption Loan scheme which will offer viable businesses loans of up to £5m, with no interest due for the first six months. The government will provide banks with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give banks confidence in continuing to provide finance to SMEs. We understand from our banking contacts that the banks got no advance notice of these plans, and have therefore needed to move very quickly to devise a loan product and have it approved. In order to access a Business Interruption Loan, applicants will need to contact their banks directly in the first instance but may need help preparing supporting information such as accounts and cash flow forecasts Our understanding is that relationship managers in most of the major banks should be in a position to talk about these, and how they work, today or tomorrow, and that loans should be available from next week, although this may vary from bank to bank.
2. Small business grant funding of £10,000 is available for all business in receipt of small business rate relief (SBRR), or rural rate relief. The government will provide additional funding for local authorities to provide a one-off grant of £10,000 to businesses currently eligible for SBRR or rural rate relief to help meet their ongoing business costs. If your business is eligible for SBRR or rural rate relief, you will be contacted by your local authority. You do not need to apply.
3. Individuals should bear in mind that now might be a good time to arrange income protection insurance. This pays out if the policyholder is unable to work as a result of ill-health.