Some industries are more severely affected than others, so it’s vital to act quickly and decisively. Effective leadership and decision-making skills during this period of economic uncertainty are crucial to ensure your business is well-positioned to survive and thrive.
- Export the last 12 months of trading from your accounting software and calculate your average monthly cash flow.
- Factor in a drop in revenue of between 20-60%, or more, depending on your industry.
- Ensure your variable expenses are adjusted with your revenue.
- Assess how the drop in revenue will impact your trading conditions.
- Evaluate every expense account and remove any non-essential expenses.
- Research ways to negotiate and reduce other expenses.
- Maximum total of $250,000 per borrower.
- Up to three years, with an initial six-month repayment holiday.
- Unsecured (i.e. borrowers will not have to provide an asset as security).
- Defer, by up to 4 months, the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise duty.
- (For businesses on a quarterly reporting cycle) Opt in to monthly GST reporting to receive faster access to GST refunds you may be entitled to.
- Vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. In this instance, you can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
- Remit any interest and penalties incurred on or after 23 January 2020 that have been applied to tax liabilities.
- Enter into low-interest payment plans for your existing and ongoing tax liabilities.
- Ensure the landlord is aware that they can seek a loan-freeze from their bank. Be mindful that landlords are facing a different situation, so accommodate their individual circumstances as well so you can reach a result that benefits both of you.
- Avoid spending your rent saving here. Once you’re in a secure position, you can make the additional rent repayments to the landlord if possible.
- Communicate early and communicate often. Remember, your team is going to be facing the same fears you are in the current climate.
- Try to retain as many employees as possible, and instead split the burden (e.g. reduce wages).
- Take the opportunity to let go of under-performing staff or those who don’t align with the business culture.
Business Turnaround Services is here to help!
We are armed and ready to stabilise and grow your business with our team of management consultants, management accountants, operations managers and marketing team.