We’ve compiled a summary of a few tips on how to manage your cash during this time. If you’d like to discuss any of these points in more detail, please do not hesitate to contact us via email or a phone call. We believe this process needs to be fluid right now so it’s a good idea to review and adjust your cashflow forecast accordingly over this time.
Know what you need to keep to paying and what you can pause:
Wages are an example of what you need to keep paying. If you haven’t applied for the wage subsidy it’s not too late to do this.
If you rent a commercial building, you may be able to stop paying rent if you can’t access the building, but you need to talk to your landlord about this. Speak to your landlord about an initial 2 month rent holiday if you haven’t already done this.
Tax obligations are still something you need to keep on top of. There may be penalties and interest removed by Inland Revenue, but this is something we cannot guarantee for everyone.
Are there any large payments due? Talk to your suppliers about the best way to manage any outstanding payments. It may be a good idea to keep in touch with your regular suppliers to see how they are going especially if you want to retain the business relationship long-term.
We all understand the situation by now but if there are any customers that owe you significant amounts of money, ask them if they can pay you even if it is in instalments. It’s best not to wait until the end of the month to find out they are not going to pay. You’ll want to get a clear idea of what money is going to come through in the next few months.
Talk to your bank:
There are funds available if you need them and if you believe that with some funding you will be able to keep your business going, then this may be a good option for you.
As always, if there is anything you cannot pay right now, or are having trouble with please let us know. We are here to help and can offer guidance on how best to proceed.