Protecting your cashflow
It is bad cashflow that throttles business. In these uncertain times controlling your cashflow has never been more important than it is now.
If you didn’t watch our Facebook live on Sunday I urge you to watch it, but are you now considering EVERYTHING that can be done to ease cashflow over the next few weeks/months?
Serviced accommodation operators…
Are you considering your terms with suppliers such as linen suppliers and consumables? Can you renegotiate your payment terms?
If you are on VAT or TOMs are you speaking with HMRC to set a payment plan up to ease that cash at bank. Believe me, they will talk to you. Set your position out and ask them for help.
Short-term relief options.
As Amanda discussed on the live, are you going to look at a short term business loan to help your cashflow over this period? Interest rates are down. Doesn’t this make sense?
Again, speak with your landlords. Have an open discussion about a reduced period, a payment holiday, or even explore switching to a Lease Option and reducing the monthly fee?
Can you defer any weekly payments that you are making to monthly or even 30 days?
External service agreements
If you employ external services, for example housekeeping, can you do any of this yourself to help reduce costs? I don’t mean to sound peevish to the guys cleaning your units but if you don’t preserve your business then there may be no business for them to come back to.
This problem is going to trim this sector significantly. We have little doubt – and things will change almost daily. But you need to be fit on the other side so that when business bounces back you are in a position to push on again.
If you have any specific questions or need advice about a particular issue, please feel to get in touch and we’ll either try to advise, or point you in the right direction.