COVID-19 Business Resumption Working Capital Planning

Having carried out the above base line analysis (i.e. continue to prepare weekly cash flows; assume a baseline of things continuing as they are now; work out if your existing cash resources will be enough to sustain the business for the coming months after accessing the government support initiatives of the job retention scheme, the grants for small businesses, delayed VAT and self assessment payments and CBILS lending) consider if you have sufficient working capital for some level of business reopening.
o Operationally once you start to bring staff off furlough do you have the working capital to pay them until your income starts to flow?
o If not you may need to go back to your bank for further support or consider other ways of bridging this gap. Slowing payments to suppliers should be an absolute last resort, we are in this together and need to work together to get through it.

COVID-19 Business Communication Planning
Communicate and engage with clients, customers, suppliers and your own teams regularly and in a consistent and effective manner – focus on positive messaging and ensure those working remotely and/or those who have been furloughed don’t become isolated or forgotten about.
o Review key contracts with customers and suppliers to ensure you understand your duties and obligations.
o Each contract will need to be carefully considered to ascertain the impact, if any, that COVID-19 may have. The current crisis may excuse or postpone the performance of contractual obligations.
o To aid cash management communication continues to be key – within your organisation, with your customers, suppliers and stakeholders.

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