If you're a director in this situation and worried that you won't be able to pay staff when they return from furlough - what can you do? Are there any other government support initiatives that could help your business or should you try to secure additional funding from other sources to help support your business through these difficult times? Read more
A winding up petition represents a serious threat against your company meaning it could be closed down if a winding up order is granted by the Courts
So what is happening to winding up petitions during the Coronavirus pandemic? The Government brought in a range of emergency measures to help businesses deal with financial distress and creditor pressure as a result of Covid-19. Read more
The coronavirus pandemic has caused serious financial distress for businesses around the globe. Many companies are simply unable to continue to trade due to the effects of lockdown and other measures put in place to protect our health. A shortage of cash is always a huge issue for businesses and even under normal trading conditions businesses can become balance sheet insolvent as it becomes impossible to pay bills when they fall due. So if your company is experiencing financial distress what should you consider the following.
Many businesses will continue to struggle with cashflow after lockdown – a situation exacerbated when creditors and suppliers are chasing for payment. For company directors it can be difficult to deal with this stressful situation when you’re trying to move your business forward but you are constantly ‘firefighting’ creditor issues.
So what can you do?
With so many companies in the UK struggling to stay afloat during the coronavirus pandemic the government has introduced a series of measures designed to prevent them moving into insolvency. As many businesses are experiencing extreme cashflow difficulties and finding it difficult to pay creditors across the board tax arrears can be particularly worrying.
HMRC has offered additional support to businesses during the coronavirus pandemic by extending the Time to Pay scheme so how might this help you?
The coronavirus pandemic has caused an unprecedented demand for business loans and funding as organisations race to save their companies from terminal financial decline.
High street banks and other business lenders typically require directors to provide a personal guarantees ('PG') before they sanction borrowing. So what do I need to know about personal guarantees?
Coronavirus has caused serious cashflow problems for many with businesses unable to trade as normal or suspending operations completely. Ensuring there’s enough cash available to pay the bills is certainly challenging.
The time lag between completing work and receiving payment can be considerable but generally manageable under normal trading conditions, but if there’s little prospect of new work and business debtors are retaining cash so they too can survive the situation can become dire.
Launched on 6 April 2021 the Recovery Loan Scheme ('RLS') provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic. You can apply to the scheme if Covid-19 has affected your business. You can use the finance for any legitimate business purposes - including managing cashflow, investment and growth. However, you must be able to afford to take out additional debt finance for these purposes.