Duncan Swift, President of insolvency and restructuring trade body R3, responds to the measures announced on Tuesday 17 March 2020 by the Chancellor of the Exchequer, Rishi Sunak MP, to support businesses during the COVID-19 outbreak:
- The Chancellor’s ‘Whatever It Takes’ strategy is the right one, but businesses do need help now, and other types of help are needed alongside the additional access to finance announced.
- Feedback from our membership is that otherwise healthy businesses are already experiencing a cash flow crisis. Many businesses will face insolvency without significant creditor forbearance or direct help from Government to bridge the gap in their finances. It’ll be expensive, but Government intervention is needed to weather the storm. As well as additional money going in to businesses, payment holidays for businesses on things like PAYE, NICs, or other taxes will help manage outgoings, too.
- The focus on loans could store up problems later: these loans will need to be paid back. Grants for small businesses will help, but larger businesses aren’t immune to the impact of COVID-19.
- The first step any business in difficulty should take is to seek professional advice. There are options out there. Speaking to creditors will also be key, and the earlier businesses do this, the earlier they may be able to rearrange payment terms.
CMB's TWO STEP INITIATIVE APPROACH
RESCUE TO RECOVER
We are launching our own initiative to help businesses stay afloat.
Rescue to Recover is our first step in our two step approach.
Our vision is that we can assist you to buy the time you need to be safely rescued and start to recover.
We hope with our guidance and measures, you can take the necessary steps to respond to the ever-growing and unprecedented disruption caused by the COVID-19 pandemic.
Our second step is Recover to Maintain, please click on the second box in order to learn more.
RECOVER TO MAINTAIN
We want you to know that CMB and the UK Government have a shared objective of wanting your business to survive and, ultimately, prosper.
This part of our initiative is known as Recover to Maintain.
This communication and the ones that will follow, will help you understand what the UK Government is doing and what CMB is recommending in response as an independent firm.
With this guidance, CMB will assist you to Recover and Maintain the business through these volatile times.
Click button below to find out more.