Guidance in relation to COVID-19 for Business Customers
Companies could consider the following actions:
- Provide guidance and support to employees and implement measures to protect staff;
- Some businesses’ cash flows are already being impacted as revenue dries up. Businesses should review cash flows in detail for at least the next three months and identify what mitigating actions can be taken to preserve cash in the short and medium term;
- Stabilise supply chain – understand your suppliers exposure and agree actions with them to address anticipated shortages e.g. sourcing alternative suppliers in other regions if necessary;
- Engage with your key stakeholders ( e.g customers , suppliers, bank, investors) – Businesses should communicate regularly with key stakeholders to try and address any current or anticipated challenges. Some actions that can be taken are listed below:
- Talking to your bank in respect of loan obligations. Bank of Ireland has a number of COVID 19 supports available. Early contact with your bank is advisable if you require a repayment break or increased working capital facilities.
- Advising customers early if there is any delay with your deliveries and advise them when they can expect to receive them if there has been a delay.
- Renegotiating payment terms with suppliers if necessary
- Talking to your debtors, there may be an opportunity to offer a discount for early payment.
- Talking to your landlord if you think you are unable to pay your rent on time.
- Assess / Review contractual obligations with partners – it is possible that some partners are not in a position to fulfil their contractual obligations. This step may also provide partners with the opportunity to attempt to renege on arrangements which, with the benefit of hindsight, they would prefer not to have entered into;
- Review insurance cover – your business may have insurance coverage for some of the losses that may arise from COVID-19. It would be prudent for businesses to conduct an early stage analysis of their insurance policies to ascertain what coverage may be available should it be required. In particular, consideration should be given to whether there are any specific notification requirements or obligations to engage with your insurer in certain circumstances. In addition, consideration should be given to whether your cover stipulates duties to mitigate any loss that your business may incur;
- Retrain your staff to ensure your business can continue to operate at all times;
- Avail of Government support – a variety of supports for businesses affected by COVID-19 have been announced. It is worth understanding what these are and if and how your business can avail of them. For more information click here.
- Check out revenue guidelines regarding ongoing tax returns and payments. For more information click here.
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