Page 9 - SME Toolkit: The Star Covid-19 Edition

Wednesday,May27,2020 www.thestar.co.uk THESTAR 9
INSOLVENCY
in association with
Helping businesses to make it through their toughest times
Running a business is nev- er easy, but it has rarely been this difficult.
Firms have been faced with previously unimagined challenges over the past few weeks.
While some businesses will have had ‘disaster recov- ery’ plans in place before the coronavirus crisis hit the UK, few will have had effec- tive plans to deal with entire sectors of the economy being closed, or millions of people being told to stay at home.
Finding a way through the current situation is not easy. Some businesses have seen a sudden and dramatic fall in customers and cash flow. Others have had their supply chain disrupted and orders dry up.
A small but significant number of businesses were already struggling even before the economic effects of COVID-19 became clear.
All these businesses need expert help to guide them through the range of differ- ent options available to them. Every business is unique – there is no ‘one size fits all’ approach to helping busi- nesses that are struggling to survive – each requires a tailored solution to their par- ticular situation.
That’s where Graywoods comes in. We are business recovery and insolvency experts, specialising in find- ing best outcomes for compa- nies in financial difficulties.
From turnaround plans, negotiating with creditors and sourcing new fund- ing, through to formal reor- ganisations, voluntary arrangements and managed closures, we provide tailored solutions to serious
Partners at Graywoods, Adrian Graham and Deborah Lockwood.
Taking expert advice at an early stage is essential
measures to help companies cope with the sudden finan- cial impact of the coronavi- rus and understanding the
expert advice businesses.
at an early ‘Wespecialiseinfinding “We are stageisessen- solutionsforfirms increasingly
lenders for support through the various loan schemes. It is important to understand what banks and other lend- ers are looking for when they make their lending decision.
“It is also important to carefully consider whether taking on more borrowing is the right thing to do. Expert advice is key to ensuring busi- ness owners make the right decisions.”
CONTACT
Graywoods, 4th Floor, Fountain Precinct, Leopold Street, Sheffield, S1 2JA.
Tel: 0114 285950
TOP TIPS FROM A TURNAROUND SPECIALIST
available options is key to ensuring the best outcome Taking forstruggling
PRACTICAL STEPS
There are practical steps that every business owner should take to stay in control of the situation, says Deborah Lockwood, partner at Graywoods, the Sheffield-based business turnaround specialists. Firstly, she advises, review the current financial position and prepare a cashflow forecast.
This will allow you to con-
sider whether your business can survive or whether closure is inevitable.
Secondly, minimise costs wher- ever possible.
Conserve funds and take steps to
maximise income.
Consider whether the business can be put into hibernation whilst the situation becomes clearer. Thismayinvolve usingthe government’s ‘furlough’ scheme to cover some of the cost of wages for members of staff who are not needed in the meantime.
Thirdly, keep the situation under review and take additional actions where necessary.
This could include formulat-
ing a turnaround plan or could mean taking steps towards closing down the business in an orderly manner.
debt and cash flow problems.
t i a l . T h e sooneraprob-
lem is identi-
fied, the more
options there will
be and the more likeli-
hood there is of the business being successfully rescued.
The government has announced a range of new
asked by our clients to sense-check business plans and projections,” said Graywoods part- ner Adrian Graham. “Busi- nesses are bombarded with information from the govern- ment and some are turning to
in financial difficulties’
Care of your finances
Best outcomes
Support