Managing Cash Flow In Crisis

Professional firm, Deloitte, recently published an article titled COVID-19 – Managing Cash Flow During a Period of Crisis, that offers 15 practices and strategies that will be helpful for your small business.

Here are a few:

Look holistically at your business

When operations are unexpectedly disrupted it is important to take a look around and see how your customers and suppliers are reacting to it. You, your suppliers, and your customers are all trying to collect cash sooner and pay later. The key thing, for now, is to engage with these partners and understand where they’re coming from. After the crisis, you’ll need each other to recover. So, in the long run, it pays to be flexible.

Ensure continued access to financing

It’s time to give your lender(s) a call and confirm whether that emergency credit line you thought you had is still solidly in place. You don’t want to wait until the day you need it to find out the qualifying criteria or terms have changed.

Reprioritize near-term plans and ongoing spending

It’s time for a critical look at what you had planned for the near-term in terms of major expenditures. Evaluate whether now is the best time to expand into a new market, launch that new product or purchase that machinery. Consider delaying major expenses until such time as your cash flow and assets are on more solid footing.

Also, undertake a review of your company’s ongoing spending. Just like with your personal finances, it’s a good idea to identify your core, essential expenses and what are optional or more ‘nice to have’ items. Determine what is truly necessary in areas such as travel, development, entertainment expenses, etc. 

Review business interruption insurance

There has never been a better time for you to understand the details of your coverage. Get in touch with your carrier, ensure you understand your policy in terms of what is covered, what is not covered, and over what time period.

Please review the full article at Deloitte – Managing Cash Flow During a Period of Crisis

Chambers Plan

Chambers Plan

Chambers of Commerce Group Insurance Plan is Canada’s #1 employee benefits plan for small business. Chambers Plan has been protecting Canadian firms for over 40 years. As a not-for-profit, any surpluses are reinvested to the Plan to support industry-leading stability. That's why more than 30,000 small to midsize businesses trust Chambers Plan to protect their employees.