Corona Finance Management… Basic Steps to Take right now!
Massive thanks to Bex Inglis from Princess PA who has yet again written a great article for you guys to read and take advice and guidance from. ( Bex’s looks after lots for me in my own business, WB GAS LTD. We Install boilers across Luton, Dunstable, Milton Keynes & St Albans but, Bex from Princess PA works remotely for us, reach out to here if you need some help in your admin )
COVID-19 is having a significant impact on our way of life. With non-essential businesses closing their doors until this is over, now more than ever, we need to be looking at our finances and figuring out “how are we going to survive?”
Many of us have had a massive shock to the system with our businesses effectively stopping overnight. The government has rolled out schemes to help businesses throughout this period. This article will look at the critical points of some of those available.
Coronavirus Business Interruption Loan Scheme (CIBLS)
This new scheme is now open to applications. It can provide funds of up to £5 million for companies experiencing lost or deferred revenues that lead to disruptions in their cashflow. The scheme covers loans, overdrafts and other business financial products.
The benefit to businesses is that the lender will pay the fee to access the scheme, with companies incurring no upfront costs and lower initial repayments.
This scheme is available to businesses that:
- are a UK-based, Small to Medium Enterprise (SME)
- have an annual turnover of no more than £45 million
- generate more than 50% of its turnover from trading activity
- wish to borrow up to £5 million
- have a borrowing proposal which the lender:
- Would consider viable, were it not for the COVID-19 pandemic.
- Believes will enable you to trade out of any short-term to medium-term difficulty
There are 40 accredited lenders across the U.K, and the full list can be found <here>https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/current-accredited-lenders-and-partners/
Businesses will need to approach lenders themselves, which can usually be done via the lender’s website.
Whether the finance is offered or not, will depend on the lender’s decision. Lenders will try to provide finance on standard commercial terms before using the scheme.
If a lender turns you down, you can approach other lenders within the scheme.
It’s important to remember that this will become a debt, and 100% of the liability will be with the borrower.
Coronavirus Self-employment Income Support Scheme
There is help available for those of us who are self-employed. The Self-employment Income Support Scheme will allow claimants to receive a taxable grant worth 80% of trading profits for the next three months.
Those eligible for the scheme will be contacted by HMRC to submit a claim online. HMRC will use data from the 2018/2019 tax returns that have already been submitted.
Read Full Article here - https://waynebettess.co.uk/2020/03/30/corona-finance-management-basic-steps-to-take-right-now/