September 2020 will be a critical month for many businesses and the economy in general. This means when Covid support ceases for your business, business owners will once again need to rely solely on their own turnover as well as deal with creditors seeking to recover debts. Some of which could’ve been outstanding since March 2020.
Covid-19 support measures have delayed the inevitable with many business owners putting off making important decisions while their various debt obligations continue to grow in the background. Imagine having no cashflow, being forced to change your trading habits and to pay six months of rent and finance costs as a lump sum, before you can even open your doors. That’s what some businesses will be facing.
For many insolvency is a taboo subject and because of this business owners don’t decide to take action and discuss their options in time. Many don’t know that Safe Harbour and Voluntary Administrations are temporary measures and have the potential to save your company or that Bankruptcy and Liquidation will give you the freedom to draw a line in the sand once and for all.
Because of the restrictions and lockdowns, we don’t know what the next 6 – 12 months will look like. But what we do know is that when JobKeeper ends, financial pressures will return, debts will become due and payable and people will be forced to face the grim truth of not being able to trade like they used to or even continue operating at all.
The government’s JobKeeper scheme has been promoted as a crucial lifeline helping employees and businesses stay afloat during the coronavirus crisis. But in fact, what we’ve seen is that it’s unintentionally created ‘Zombie Companies’, artificially propping up businesses that are destined to fail once the government assistance packages are withdrawn.
We as individuals, business owners and a nation have arguably encountered the most stressful and difficult economic times of the 21st century. For many of us we have not known anything like this before, but past experience shows reaching out and asking for help, can and will deliver results and ease your stress. There is no one answer that will suit everyone; however, we are here to help. The earlier you seek help the more options and more strategies we can explore in order to achieve your desired result.
At Corporate Lifeline we will tell you everything you need to know and give you the best possible solution for your circumstances. Speak to us today