For many companies, the ongoing business backlash from COVID-19 poses an existential threat. Regardless of the government financial support and stimulus packages, there’s a balance still to be struck between short term business needs and longer-term decisions. And as COVID-19 continues to bare its teeth, businesses will need to be deft and fleet-of-foot over the coming months, with their best and worst case cash scenarios planned out in advance.
In particular, businesses should consider and plan for the New Year as there will be increased pressure to meet liabilities.
The spectre of deferred VAT and existing corporate and personal tax obligations, will surface when grants for the Coronavirus Job Retention Scheme have come to an end and repayments for additional borrowings taken out under the Coronavirus Business Interruption Scheme (CBILS) scheme become due.
With these events pending, consider factoring into planning, the following practicalities:
Time to Pay Arrangements – Due to COVID-19 businesses are being given additional Time To Pay their HMRC obligations.
Additional Finance – We can assist with finance options including Invoice factoring & discounting, as well as traditional loans and niche lending alternatives. We can also advise on recently-announced government funding support aimed at small businesses.
Debt collection Assistance - At a time where every penny counts, we can assist to recover commercial debts and maybe even those you have written off.
Director Guarantees & Personal Liability – Personal guarantees provided for security, may be called in. Call us asap for advice in this situation as things can quickly spiral.
Creditor Pressure – Worldwide businesses are being affected by COVID-19 and as such it’s hard to imagine a creditor that’s not sympathetic to your payment problems. Don’t be afraid to talk to your creditors and find a repayment agreement to move forward with.
Legal Demands: Winding Up Petitions, Country Court Judgements (CCJs) & Statutory Demands all need to be dealt with swiftly to avoid at worst, compulsory liquidation.
Company Restructuring – Due to COVID-19 (or other reasons) a restructure of operations may be needed to save the company. Greenfield Recovery can assist with putting a company into an Administration, to provide a breathing space from creditors whilst further plans are formed or implementing a Company Voluntary Arrangement (CVA) to restructure debts and liabilities, allowing the continuation of trade.
As Licensed Insolvency Practitioners, we are uniquely positioned to help guide you through these coming months. Our national advice is free and confidential, and there is no obligation. Please do just call 0121 201 1720 if your business is in financial distress.
