Published: 09/11/2021 By Hannah McCormackPartner Andrew Bailey has recently spoken to a few business owners who have utilised the recovery loan scheme, that was recently extended until 30 June 2022. This extension may be vital in keeping lots of businesses going.
We have found that many business owners are supplementing this additional finance by making changes within the business to help with their turnaround. These additional changes are vital because further borrowing is not going to solve the problem without changes being made.
Other options out there include approaching creditors, including HMRC, for "time to pay" so repayments of accrued liabilities can be spread over a longer period of time.
When Andrew speaks to any business owner, he urges them to put together cashflow projections with their accountants so they have some clarity on what to expect going forward. Even though things are difficult to predict at the moment. However, these projections give a business owner insight into what to expect in the future and perhaps identify changes they can make. In addition, it also means there is a record of the decisions to show why a business felt they could continue to trade and that there was a reasonable basis for doing so.