Cashflow in a time of Coronavirus

As a follow up on my CBILS advice I want to share the cashflow checklist that I produced for my clients (and for myself!)

A cashflow forecast is the best way to see how much help you need at the moment (and you will be asked for one if you intend to apply for help under CBILS) – surviving 2020 is going to be all about your ability to pay essential bills rather than your profitability.

So I’ve attached the checklist here. Key things that I’d highlight are:

1. Extend your timeline well into your business’ recovery – it’s often restocking/ re-growth that leads to cashflow problems
2. CBILS loans are the last resort: make sure you’ve looked at every option available in order to minimise the borrowing that you’ll need
3. Think about how you’re going to repay any loan (including VAT/ tax deferrals). Repayments will use up vital cashflow when your business starts to recover
4. Stop and think about what the forecast is telling you. Is planning a return to the old normal the right thing for your business? If sales are down to a minimum at the moment then what sales do you want to regain? This is a good time to take stock and re-focus.

It’s always difficult knowing where to start with this, but the checklist has a structure that you can follow and the sooner you get started the sooner you’ll finish. If you get into difficulties give me a call, I’d be happy to help!

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