Financial and Business Support Update
We are all being impacted by these current events and as we understand more and more of the impact the Corona Virus is having across the world as well as the direct impact it is having on our local economy, the realisation for many is our businesses and livelihoods are under threat. Unprecedented times call for unprecedented action from you as a business owner.
Over the weekend and even earlier this morning, we have been analysing the Government Announcements to ensure we are able to assist and help position each and every client of ours towards the many incentives and Government Stimulus packages available. We await the final detail of all these measures once these matters pass through Parliament so once they are law, we can talk to the facts and assist you in the detail.
Last week we sent out 3 client communications outlining the announcements as they came to hand and we have had many clients contact us for support. More announcements and messaging will follow over the next couple of days to ensure you are aware and kept up to date as to the Government initiatives which are designed to give your business the best chance to survive this period.
We urge you to do a few things today to steer you through the many issues you will need to consider:
- Please, this morning as a priority, if you haven’t already, contact your bank. The banks have announced numerous measures to assist you by suspending repayments, dropping interest rates and opening up additional lending facilities which are effectively being guaranteed by the government. Banks have been positioned to assist in cushioning your business to assist you to keep your staff employed so please reach out to them for that support today.
- Review the impact this has had on your business to date and the anticipated impact moving forward. For many, the impact will be massive but you need to realistically assess the impact on your business income and take steps to counteract that impact. Last night the Government enforced closures of all pubs, clubs, churches and cinemas from midday today. It is without saying this effectively makes it impossible for these businesses to continue trading at all. Immediate stand down of staff, discussion with your landlord to reduce or defer rent payments and accessing the various incentives and grants available are the sorts of steps you need to take if your business is under threat. These measures will give you the opportunity to guide through these times.
- Prepare a cashflow forecast. As the initiatives are being announced, we need to be ready to gain access to the various incentives and support being made available. The banks will no doubt require some analysis of your estimated cashflow forecast to provide the emergency loan funding so by having this ready will assist you in fast tracking the process. The ATO will work with us in deferring payments of BAS and other tax obligations but we need to understand where your cashflow sits in order to engage with the ATO to arrange all sorts of payment deferrals and in some cases, refunds of previously paid obligations like PAYG Withholding. Our staff are trained on preparing cashflow forecasts and we can assist you in understanding your cashflow forecasts after all of the various incentives and economic impacts are understood. We urge you to put your hand up and let us know if you need assistance with this cashflow planning.
We are with you as you step through this journey.