YOU are probably aware of the £330bn of loans to be made available to businesses. These are to assist firms, such as leasing brokers, with short and medium term cash flow requirements should they be required.
While these loans via the British Business Bank are debts, and need repaying, they may be the assistance you need right now.
Preparing your businesses to be loan ready
For businesses with a turnover threshold below £41m, David Kendrick (pictured), the head of automotive at UHY Hacker Young, says:
“It is worth preparing your business for next week (from March 23) when it is anticipated that these loans will become available through your banking partners.”
Kendrick suggests the following information may be required or requested to complete an application:
- 2019 full year performance of the business
- MI to the end of Feb demonstrating that the business was viable at this point
- Detailed rolling three month cash flow forecast, rolling into a more high level six month forecast with assumptions
- Asset and liability statements
- Bank statements
- Actions taken by the business to protect themselves financially against COVID-19
- Actions taken by the shareholders to support the business such as reduced earnings, drawings, cash injections
“It has been stated that there must be a viable underlying business case for this loan to be made available. Please take action now in advance so you are well positioned to move quickly when it becomes available to everyone.”
Using VAT and PAYE time to pay helpline
Kendrick also advises that a smart step is to contact the HMRC COVID-19 helpline and request a VAT and PAYE time to pay arrangement.
“This is typically a minimum three month payment holiday and it has been granted for a significant number of businesses by simply taking the time to call 0800 0159 559.”
You can defer VAT payments – no application is required for this. The deferral period applies from March 20, 2020 until June 30, 2020.
Coronavirus business support website
The government has packaged its help areas into one page. This is a very useful website. Click here to access the resource Business Support.