Financial support for small businesses during Coronavirus 2020

Coronavirus Support for Small Businesses

We know that this is a worrying time for businesses, and we want to help…

You might be wondering, what you can do to improve your situation or to survive it?

New support for businesses and individuals is being announced daily at the moment and we will try to keep our social channels up to date with all developments. At this point in time, we wanted to provide some general cash flow advice and share some of the current measures being introduced to support small businesses during this pandemic.

​Where can you get funding from if you need it?

  1. Before you go to a bank, it is often cheaper to get the cash that is rightfully yours sitting in somebody else’s bank account. Ask your clients to pay their outstanding invoices. If they too are small businesses perhaps ask them to pay half of the amount owed now and the other half at a later date – this would help you both.
  2. Contact your suppliers (not the accounts department but the boss) and see if it’s possible to make arrangements to delay or reduce your payments. In the long run, this supports them because if you are still in business, you’ll still be purchasing from them and we’re all likely to remember those who helped us at this time.
  3. Contact your personal suppliers – The government have included mortgage holidays in their list of corona actions, but many mortgage lenders have always allowed payment holidays as do some loan and credit card providers.  If you are already struggling or think you may struggle through this period it might be worth phoning your lender, be it credit card, loan or mortgage provider and ask them to give you a break.  This should not affect your credit score but make sure they confirm this to be the case before saying yes. 
  4. Take a look at your bank statements for the past few months. What are you spending that you could probably do without, even just for the next few months?

Government & HMRC support for businesses, announced up to 17th March 2020

  1. Statutory sick pay relief package for SMEs – if staff are off sick with Coronavirus, then their SSP (which will now start from day one of absence) can be recovered by the employer, which was not the case before. 
  2. 12-month business rates holiday for all retail, hospitality and leisure businesses in England
  3. Small business grant funding of £10,000 for all businesses in receipt of small business rate relief or rural rate relief 
  4. Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
  5. The Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance 
  6. HMRC Time To Pay Scheme – All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
  7. If nothing above applies to you then check to see if you are eligible for employment support allowance (ESA).  This is open to the self-employed as well as employed. https://www.gov.uk/employment-support-allowance/eligibility

For full and up to date details visit https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

If you have concerns over your cash flow and would like to carry out a review, we can help you to understand where costs can be temporarily cut and what action you can take to increase your business income.

We’re all in this together and we want to support our small business friends to weather this somewhat unusual storm, just get in touch if you’d like to chat to someone about your options.

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