It is hard enough to run a business when the economy is thriving and your products or services are in high demand. But what now? The Covid-19 pandemic could not have been anticipated, nor could the extent of the damage caused. Whilst it looks like we are closing in on the light at the end of the tunnel, what does it mean for your business?
Now that the most problematic of restrictions are being gradually lifted we can’t just return to normal. As a bare minimum every business will have to make subtle changes to comply with new Covid protocols making the workplace safe for staff, clients and customers. But what else should you be aware of:
- In many circumstances, whilst you have not been able to trade (or trade has been limited) you will have now taken on additional debt just to keep afloat. Whilst furlough payments don’t need to be repaid to HMRC, the bounce back loans are fully repayable. The interest and repayment-free period ends twelve months after the business took out the loan. For many businesses payments will soon need to be made against these loans, at a time when business and demand has yet to recover to pre-pandemic levels.
- Do you owe rent and rates for periods you have been in occupation but not trading? Are you now facing the prospect of negotiating rent repayments on top of existing payments that are falling due?
- Whilst staff have been on furlough they have continued to accrue certain rights. For example, whilst an employee is on Furlough they still accrue holiday entitlement. Now that you are bringing staff back they may be owed substantial time off.
- Some of your suppliers may be in financial difficulty… do you owe them money? Have you proactively discussed repayment proposals or sourced alternative suppliers to ensure business can continue uninterrupted?
- Some of your customers may be in financial difficulty… do they owe you money? What are you doing to attract an alternative customer base and how are you managing collection of your debtor ledger?
Every business will face its own set of challenges at this unique time and there is no ‘one size fits all’ guidebook to follow in plotting a course through this. The worst thing you can do is bury your head in the sand and hope it will all go away. So what should you do? Seek professional advice early. The sooner you do the more options will be available for you to turn things around. When you are personally invested in the business it is often very hard to see past the immediate problems and look at wider solutions and objectives. That’s where we come in.
We off a free initial no obligation consultation, so it’s a no brainer; see what we have to see and what we can do to help. As a young and dynamic firm of Licensed Insolvency Practitioners we are perfectly positioned to advise, provide creative solutions using legislation to your advantage and to put in place strategies to help safeguard the Company’s survival.
Please contact Nicholas Barnett ([email protected]) or Stuart Cottingham ([email protected]) by email or phone; 0208 634 5599.
