Bristol Director Andy Beckingham talks to SW Business Insider on how we are helping clients to effectively manage cashflow through the Covid-19 crisis
“We are working with a range of SME businesses to help them manage their working capital resources and to get through the pandemic. Three approaches which are proving particularly helpful at the moment are Redundancy Payments Loans, Time to Pay Arrangements and our invoice finance facility review.
Reduce staff costs with a Redundancy Payments Loan
“One of the most effective, and yet rarely used, options is the Redundancy Payments Loan process – offered by the government, outside of the recent furlough scheme. It’s an effective solution for otherwise-viable companies that need to reduce staff costs to stay afloat but are unable to make redundancy payments up front. The aim is ultimately to save as many jobs as possible.
Delay tax payment with a Time to Pay (TTP) Arrangement
Similarly, for businesses that cannot pay their tax bill on time, HMRC’s Time to Pay (TTP) scheme allows tax debts to be paid off in instalments. So far this year, we’ve rescheduled the payment of over £3.1million of HMRC arrears to allow 16 businesses to continue trading – giving us an acceptance rate of 100%. When used alongside our business critical payment review service, this can give good businesses a real chance to stay afloat.
Invoice finance facility review
Businesses using invoice finance should actively review their facilities on a regular basis to ensure that the financial product they are using actually fits their business and its cash-flow dynamics. When there’s pressure on sales, invoice funding alone may not provide all the working capital the business really needs.
We’re working with many SMEs and their funders, to ensure that all parties understand how best to manage expectations in these circumstances. As a result, we’re helping lenders keep their clients afloat and ensuring that SMEs get access to the funds they need whilst avoiding penalties and misunderstandings. It’s a collaborative approach to cashflow management that works for all parties.
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