Furlough Facts…
Finally the finer details were revealed,  apart from one minor detail, the way to calculate it!

Corona Virus- Business Update 
As the full impact of Corona Virus begins to hit home and school closures are imminent, businesses are wisely preparing for potentially long term disruption. 

While we wait for the daily government announcements on how they can help us, what can we  all do in the meantime to help ourselves?

We’re here to help
Its likely that many of you will need financial support to help you through, so you’ll need up to date figures  and cash-flow forecasts for banks and lenders.  It’s vital that you get your information to us now so that we can get you to the front of any queue.

We’ve been working hard to ensure we can continue to help you through out the crisis, even from home, so our support won’t stop.  However all meetings will be moved to telephone or via Zoom video calls

We’ll update you on the potential impact of daily government updates – so be sure to watch out for our newsletters

What else can you do?
1) Ring your client manager now to discuss the best way forward
2) Guard your cash flow- divide expense into vital and not so important
3) Cut out any unnecessary costs
4) Contact your bank to discuss options, should you need a new or  increased overdraft, asset finance or credit cards
5) Ring us when you have tax due to pay and to save you hours waiting on the phone we’ll contact HMRC on the agent helpline (much quicker)  to ask for a  deferment. As they will only discuss current liabilities there’s no point contacting them in advance.
6) Look at alternative ways to do business If your customer can’t come to you -can you deliver to them?
7) As banks are only guaranteeing £85,000, if you have higher cash     reserves, consider opening accounts in other banks to spread the risk
8) Use technology for meetings and customer contact.

So, what’s happening now?
The Welsh assembly have confirmed that they are mirroring the measures in England coming in over the next few weeks and we are awaiting further information regarding help for employers to pay staff

The current measures include;

Retail, Leisure and Hospitality
If you have insurance, you’ll be able to make a claim, as government action is sufficient to trigger this.. 
Retail, hospitality and leisure   – you will have no business rates at all for at least a year, irrespective of your rateable value and also an additional cash grant of £25,000 per business if you have less than £51,000 rateable value. 

Pubs
You will benefit from £5,000  discount in business rates.
These are available directly from Local Authorities

Small Businesses
Cash grants up to £10,000 to SME that are already entitled to small business rate relief.

Personal bills
3 Month mortgage holiday for those affected by the corona virus if in difficulty.

Loans for cashflow
Banks are really working with the government to help businesses Interest free for 6 months.

Time to pay arrangement with HMRC
Helpline 0300 200 3835 

Banks
We are seeing encouraging signs from the banks. For existing bank borrowers, the messaging from Tier 1 lenders has been positive – Lloyds, Natwest and Barclays seem to be open to overdraft increases, extensions and repayment holidays. Natwest, for instance, have committed a £5b fund, whilst Lloyds have arranged £2b of finance available for SMEs up to £25m.

If you need working capital funds now or might need them in the future, it pays to be mindful that the lenders might not always be as open as they are today. An approach now for working capital is likely to get a better response than we have been used to in recent times.
What’s the likely global impact?

If like us you’ve been wondering what the economic outlook for the stock market and as a result the broader economy will be, we thought it might help to look at past crises and see what happens. 

The Volatility Index (VIX) was created by the Chicago Board of Options Exchange to represent the global stock market’s expectation of 30-day forward-looking volatility.

As you can see below, since 1990, there has only been one period of market volatility that compares to the one we’re now facing – the financial crunch of 2008.

However please see how quickly these spikes in volatility normalise. Each of the events are clearly significant on a global basis, but the fear that came with them diminished. We have been through many meaningful crises over the last 30 years, but we do always get through them and we will again.
We will keep sending you information as we receive it- so watch out for our emails

The Government website is also being updated on a daily basis and is great source of relevant information:

employers go here –https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/guidance-for-employers-and-businesses-on-covid-19

employees go here https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees

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