Get Your Ducks In A Row

As businesses start returning to some sense of normality, are you ready to bounce back and hit the ground running?

Summer already feels like a distant memory and with just four months left of the year, September is a great time to update your business plan for the final quarter of 2020. With the government initiatives coming to an end, and people returning to work, have you got your ducks in a row?

Here’s our round up of what to think about right now.

Back to Work

There’s so much to think about now to make sure you are ready to get back to work. Having a plan is essential and will help you skip through the to do list. Don’t forget to add these two points.

Health & Safety Policy

Many offices are now starting to open back up and there are so many rigourous health and safety considerations to now take into account to make the environment COVID-safe. To comply with health and safety laws, you must follow certain key guidelines, such as making sure there is sufficient hand cleaning and/or sanitising facilities put in place, signage is placed around encouraging social distancing, setting up one-way functions to avoid overcrowding and ensuring cleaning and PPE rules are applied where applicable. There’s so much to think about, and if you have staff, now’s the time to put together a back to work COVID-safe policy and invest in all the appropriate equipment and training you will need to make your staff feel comfortable and safe.

Bringing Staff Back From Furlough

With the furlough scheme finishing at the end of October, now is the time to plan ahead for this if you have staff on furlough. Can you afford to bring your employees back and what do you need to consider beforehand? You will qualify for an additional £1,000 bonus grant in February 2021 if staff are still on the payroll at the end of January 2021 earning above £560 per month on average.

Business Finance

If coming out of this period of lockdown is more financially difficult than you anticipated and you are considering taking on a loan, it’s not too late to apply for one of the government business lending schemes. Now’s the time to write up your business plan and put together a cashflow forecast for the next 12 months so you can be really clear on how much cash the business needs and how you will need to spend it.

Coronavirus Business Interruption Loan Scheme (CBILS)

As part of the government’s COVID-19 support package, the Coronavirus Business Interruption Loan Scheme (CBILS) was launched earlier this year, provided via the British Business Bank through participating providers. The loan is interest free and fee free for the first 12 months and you can borrow up to £5 million. Initially these loans were proving much harder to obtain than originally anticipated, with banks not committing the funds that were assured by the government but things have improved.

The CBILS availability has just been extended to 30 November 2020 for an offer to be accepted, so long as the application is made by 30 September 2020.

The loans are not available to every business and will depend on circumstances. 

We are partners with Capitalise, a lending search hub, who can help you source a suitable loan if your own bank will not lend to you. The application process can be lengthy and typically lenders will prioritise applications that are fully complete. As a minimum they would most likely expect to see at least the following;

• Last 3 years full accounts with detailed P&L

• Last 12 months business bank statements (Lloyds Bank usually need 6 months personal as well)

• Up to date management accounts

• Aged debtor and creditor lists

• Confirmation of any outstanding debt (provider, term, repayment)

• Statement of personal assets, liabilities, income and expenditure from all Directors

• Home addresses of all directors/shareholders

• Paragraph on how COVID-19 has affected the business and what the funds will specifically be used for.

Make sure your records are fully ready for the application process, so you have a better chance of borrowing what you need.

Bounce Back Loan

Since so much negative feedback was received about the CBILS lending provisions, the smaller Bounce Back Loan Scheme was introduced, with pressure being applied to banks to help small businesses more. It’s still not too late to apply for a Bounce Back loan if you meet the required criteria. You can borrow up to £50k, depending on your circumstances. Although many business owners may have withheld until now, the Bounce Back loan is a great way to ensure you have sufficient funds available to drive the business forward. The loan is interest free for the first 12 months and interest will be chargeable at 2.5% per year thereafter for the next 5 years unless you pay it off sooner, with repayments commencing after the first 12 months. You are best to speak to your own business bank provider first and you can read more about the scheme here. You have until 4 November 2020 to arrange this with your lender.

Other Funding

Self-employment Income Support Scheme - SEISS

The second window of the SEISS grant is now open for applications so if you are self-employed and have been affected by COVID and you meet the necessary conditions, then you can apply now, even if you didn’t claim it the first time round. You can find out more about the scheme here.

Local Authority Discretionary Funds

Some local authorities still have available funds available to support small businesses and it’s still worth getting in touch with your local authority to find out about any remaining Discretionary Grants available.

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FUSE is an independent Chartered Certified firm of accountants and tax advisors based in Highgate Village, North London. We provide a dynamic range of services to clients working in property, media, entertainment and professional services. Our clients vary in size from self employed sole traders, small enterprises and medium size businesses. We believe that comprehensive financial planning and sound business financial advice are the keys to growth and profitability.