As companies, sole traders, partnerships and business owners and directors have financially disruption, cash flow problem and business loss by COVID-19 pandemic. There are few business recovery strategies, ideas and business recovery tips that will help your business to cope from the imminent financial impact of coronavirus, recover from loss and manage cash flow problem.
Business recovery through cash flow forecast:
Cash is very important for business to run smoothly. Business will become insolvent if it runs out of cash and is unable to get new finance. Weekly cash flow forecast enables businesses to update their cash position once a week and also provides an opportunity to sort out any unexpected crisis in good time.
As businesses are experiencing deficiency of cash during coronavirus outbreak and they can handle this situation by limiting all non-essentials spending. In other words, you can manage your cash flow through cash flow forecast and for this purpose review your company outgoing spending for essential and non-essential item. Communicate with your suppliers for providing these items on flexible terms. Develop, review and continuously update your flexible and adaptable business action plan to come out with new information and success in times of high uncertainty and in response to any forecasted scenarios.
Get government and bank funding assistance for your business recovery:
You may speak to your bank or funder to find out further possible emergency financial support options available if you have found serious impacts on your cash flow or have cash flow problems.
The British bank has launched coronavirus business interruption loan scheme to help business access bank lending and overdrafts. Business can get loan of value up to £5 million with no arrangement fees or interest for period of 12 months through this business interruption loan scheme and they don’t need to give personal guarantees to banks to get the loan up to £250,000 under this scheme.
Government has set out short term loan and special grants in the form of tax relief for small businesses to help meeting their business costs and to reduce pressure on their business. So, small businesses can get loan from micro loan scheme or bounce bank loan scheme to recover their business loss that have affected from coronavirus pandemic. This scheme has opened for receiving application from businesses from 4th May and small businesses can get loan up to £50,000 without any interest payable for the first 12 months.
In addition, small businesses can get one-off government grant of £10,000 through small business rate relief (SBRR) to meet their business costs. Small businesses in tourism, leisure, and hospitality sectors can also get government grant of £25k to cope with financial disruption of COVID-19.
Self-employed people can get grant 80% of their average monthly trading profits from self-employed income support scheme to cope with financially disruption of their businesses after COVID-19. Our expert accountants in Reading provide assistance on how to make claim or apply for these grants and loans to manage your business cash flow needs.
Government Support with tax liabilities for businesses:
Planning for tax liabilities is beneficial for your business. Your tax records or payments, backup of your income and expenses information are important in your business recovery plan or get back to your business.
Businesses and self-employed people (effected by COVID-19) can get advantage from government other measures such as VAT deferment and extended HMRC time to pay scheme which gives businesses another break or relaxation in settling their tax bills such as VAT, PAYE and corporation tax.
Consider invoice or assets financing as secured financing options:
If your customers paying you slow due to financial disruption of COVID-19 and due to which your business has the poor cash flow issue, you can use the option of invoice financing, assets or outstanding invoice payments to get secured loan approval or credit account to pay your bills and deal with slow payers or to improve your cash flow
So by following these above low cost and low risk actions business recovery strategies or steps, you can help your business emerge strong after COVID-19.
Assistance of our accountants in Reading, Berkshire for business recovery:
If your business is experiencing a downtime and you want to know the best options available for you and your business cash flow needs and to navigate through trouble water then get expert consultancy from our expert team of Berkshire accountants, tax advisors and registered auditors. We provide expert financial advice to businesses on business recovery methods.