Posted 03/04/2020 by Patrick Leavy
1. Keep your accounts up to date. If you have made losses you may be able to carry losses back in time and recover tax paid in previous years.
2. FC can help you access funding – short-term loans, CBIL (Coronavirus Business Interruption Loan) scheme loans (these may be slow to get the cash so you might need other faster loans), merchant cash advances, invoice finance
3. Change bank to eliminate fees – FC recommend the Starling business bank account as it has no fees, will match your overdraft and they provide loans.
4. Shrink the business to the demand level where possible – contractors
5. Work out the minimum you need to live off, and reduce your salary/dividends to that amount.
6. Can you trade online? – instead of your usual channels, or increase online in this downturn
7. Claim on insurance – business interruption cover – if your business is closing temporarily.
8. Recover your outstanding customer payments as soon as you can – FC will give you a free basic set up on Chaser (software to help with this)
9. See your cash flow – so you can plan more easily for the period with reduced income. We’ll set you up for free on Float cash flow forecasting software so you can ‘see’ the future.
10. Work with Farnell Clarke to get your bookkeeping up to date now – you will need accurate management accounts for applying to banks for loans, and for Float cash flow planning.
11. Ask us for your current VAT liability - defer it until next year (in your Float cash flow forecast)
12. Ask us for your July personal tax payment on account - defer it until next year (in your Float cash flow forecast).
13. Speak to your bank – ask for an overdraft facility. See what they can do for loans
14. Apply for government help – grants (through council), employee salary help, statutory sick pay, CBIL (Coronavirus Business Interruption Loan) scheme loans
15. Speak to your landlord – can rent be deferred or reduced?
16. Cancel any bills that you can – and negotiate with the rest over amounts and timings
17. If you have stock gathering dust in your storeroom offer it to customers at a discounted price – set an initial price reduction to cost – converting these items to cash makes sense. It is also a win-win strategy: you free up space and add to cashflow, and your customers will perceive that they are getting a bargain.
18. If stock items are perishable, food for example, set up distribution to food banks and relevant charities and make sure that local press and radio stations are made aware of your generosity – this may not create cashflow, but it will provide free publicity.
19. Can you sub-let space? office or factory space for storage?
20. Do you have any redundant plant or IT equipment that you could sell online – eBay etc.
Book a virtual meeting with Patrick to get the ball rolling with your free cash flow forecast.Back to Blog