As we come out of these unparalleled lockdown measures, we can reflect on the last four months and the impact that COVID-19 has had on our families, friends, businesses and employees.
There is no doubt that we have not seen anything like this in our lifetimes. Not even the banking crisis of 2008 comes close, such is the far-reaching impact that the current pandemic has had.
The intensity the business community has experienced during this COVID-19 interruption has been severe and business owners have worked tirelessly to protect their businesses and the jobs of their employees whilst taking advantage of the much-needed government support.
In the early stages of the pandemic we had a lot of posts on business’ social media about continuing “business as usual”. Well, what we have seen is that it is definitely NOT business as usual. As finance intermediaries we have seen funders focus on their own customer bases and in some instances cease any new business activity at all, whilst businesses are having to deal with zero turnover with no time to react and government guidance changing daily.
Even when the guidance became clearer, businesses were quick to realise that they were not all eligible for this lifeline support. Here at CCBS, we have provided guidance and advice, and raised some much-needed working capital for these North East businesses, struggling to get the support they need for one reason or another. Not only were we able to help them through this difficult time with advice and deals, but they also helped us by showing us the resilience of businesses in our region and we applaud them and thank them for that.
Below are some of the deals completed in lockdown which have had a significant and positive impact for our clients:
So, our focus for our clients as we come out of lockdown is heavily weighted towards working capital. This is the primary concern for many businesses and so we will be working with clients to improve their cash position over the next period of recovery.
Some areas we would suggest every business look at are as follows:
-Are there any assets in your business that can be refinanced to provide additional working capital?
-Are there any assets not being used that could be sold to raise additional cash?
-Maintain a 13-week rolling cashflow and keep it updated so you know exactly where you are from a cash position and can identify any potential shortfalls in time to take reparative action
-Credit control and other cash management areas must be a priority Have you explored all the government initiatives and areas of support and also looked at alternatives if you have not been successful in your application for them?
-Have you undertaken review of and implemented program a reduction program?
Being in business can be a lonely existence and the COVID-19 interruption has probably highlighted that more than any time in the last 10 years. But remember “a problem shared is a problem halved” and we are here to assist with all of your funding requirements.
Please don’t hesitate to give us a call.
