In these tough times managing your cashflow is now more important than ever.
Consider talking to your bank about existing borrowing repayments. Some banks are offering payment holidays and interest-only options, increasing overdrafts, term loans etc. Many are offering to waiver the fees on new facilities. They may also be able to offer you the Business Interruption Loan.
Things to consider:
- Whilst your business is still operating and is viable think about getting finance now. It may not be a good idea to it until your finances change such as they adversely affect a loan application. You will be risk assessed based on your last set of accounts, current business bank statements and Directors’ credit scores.
- If you run a business or are self-employed and are concerned about paying your tax due to coronavirus, you can call HMRC’s helpline for help and advice: 0800 0159 559. Consider if its necessary to delay paying your taxes or set up a time to pay arrangement with HMRC
- Make sure you have a cashflow forecast, this will help you plan ahead for the future looking at various scenarios. Talk to us at AGA Accountants and Tax advisors and we can help you formulate a business cashflow forecast. Remember The Government help including loans will not last forever.
- Chase outstanding accounts, but be empathic with your debt collection. Maybe offer small discounts to get people to pay you on time. For bigger invoices that historically take 60 days to pay, there are solutions to speed this up. We can recommend Apps that you can adopt to making this easier and rewarding.
- See if you can get your customers to pay in advance or pay for your services on a monthly basis via standing order.
- Consider checking the creditworthiness of your clientele before you engage them for work in future
- Consider reviewing the working patterns, shift patterns and headcount of your employees. Instead of paying weekly or two weekly consider paying employees on a monthly basis or going on a temporary annualised contract.
- Review your business expenditure and reduce all nonessential costs to a bare minimum.
- Develop plans to generate an increase in sales and new business leads.
AGA Accountants and Tax advisors are accountants Alysebury and Harrow and service client all over the surrounding areas. Call us now 0203 389 9588 or email [email protected] for a free consultation.