Fruitless wait for debt relief

TIPS: TOOLKIT NEEDED TO ACCESS BENEFITS

Not receiving response after applying for funding is most pressing concern now.

clients are not open because most of our activities are stimulated by activity,” he said.

He only paid his eight staff members’ salaries until March and has been waiting for the Unemployment Insurance Fund Temporary Employee/Employer Relief Scheme (Ters) benefit to kick in from April onwards.

Simphiwe Masiza, founder and CEO of EmpowaWorx Events and Communications, says he is also yet to receive payment from the department of small business development.

“I have applied for the relief fund for SMMEs, however, we’ve received no response as yet,” Masiza said.

FNB business regional head for Gauteng South West Andiswa Bata said entrepreneurs might have some unintentional gaps in their governance and admin toolkits that are now needed to access Covid-19 relief benefits.

She said the pandemic was a good time for small business owners to reflect on some of the common features that keep popping up in relief eligibility criteria and the lessons learnt.

Besides ensuring company registration is updated, SMEs need to check that the list of shareholders and directors is up to date.

Most available relief efforts cite the need for tax compliance. In short, the business’s income tax affairs need to be in order.

Apart from financial statements, bank statements are typically called upon to provide more real-time verification of income and expenses.

Bata advises entrepreneurs to keep a record of signed and confirmed contracts, purchase orders and invoices, as these documents “can provide much-needed visibility on future cash flows”.