Coronavirus crisis escalates
No rates waiver, but help is at hand Ten steps to maximise cash conservation for Cork SMEs and business owners during the COVID-19 crisis
THE chief executive of Cork County Council has said that, while there was no current legal basis to allow for a commercial rates waiver, the authority would do its best to ease the burden on businesses that have been forced to close or scale back their operations due to COVID-19.
Speaking at last Monday’s council meeting in County Hall, Tim Lucey urged ratepayers and those living in local-authority housing to contact the authority if they are experiencing financial difficulties as a result of the Coronavirus pandemic.
Mr Lucey said that any ratepayers that can continue to pay their outstanding rates should continue to do so in the normal way.
“I trust you will appreciate that Cork County Council has a long-established, solid relationship with our ratepayers, and this is a matter that we will be working to preserve at this difficult time,” said Mr Lucey.
“The key message to any concerned businesses or individuals is to engage early with the relevant section and Cork County Council will continue our history on engagement on a case-by-case basis to provide assistance to all our tenants, borrowers and ratepayers in this ever-evolving situation.”
Mr Lucey said that commercial ratepayers facing difficulties in relation to rates payments falling due up until the end of May should contact either their area collectors (contact details are on the 2020 rate bill) or the collection office on (021) 428 5252 to discuss options and arrangements.
He went on to say that council tenants in receipt of HAP/RAS seeking a rent reduction due to loss of earnings or employment due to COVID-19 should scan
CONSERVING cash is now a critical priority for many businesses. The Coronavirus crisis is having a devastating impact on society and also across the economy. Leadership teams need to make decisions and act decisively.
Firstly, acting now to slow down the spread of COVID-19 is the responsibility of every business. Protecting your community and your staff is uppermost in everyone’s mind. However, the economic impact is being felt by businesses across the country.
Here are some steps which leadership teams should be considering right now in the knowledge that conserving cash in the short-term is a critical priority.
1. Speak to your bank now: Not enough businesses are communicating with their bank. Inform them of your situation and how you see this crisis playing out for your business in the short term.
Put them on notice that you may need a loan holiday, you may need increased overdraft facilities or that you may need increased invoice discounting.
2. Examine State supports that may help you: Unsecured SBCI loans of up to €500,000 are available. Enterprise Ireland has a range of supports including a Rescue and Restructuring Scheme for vulnerable but viable firms that need to restructure or transform their business. See more at www.ifac.ie/news/covid-19-supports/.
3. Get in touch with Revenue: Keep your liabilities to Revenue under review, and remember: if you meet the criteria, you will be able to enter into a phased payment arrangement in due course.
At this moment, interest on late VAT payments is suspended for both January/February VAT and February and March PAYE liabilities.
4. Increase cash inflow where possible: Follow up on all debtors as a matter of priority. Make sure your invoice is top of their list.
5. Use as many ways as possible to reduce spending: Consider pausing any capital investment; Cut all discretionary spending now; Ban travel even when the opportunity to travel re-emerges, use video-conferencing tools as an alternative; Where possible lease equipment, don’t buy; Renegotiate payment terms with your suppliers; Re-tender where possible; Look for a rent reduction; Get your staff to think of more ways to save the business cash.
6. Reduce inventory: this will free up cash for the business.