Lines In The Sand

This week sand has come up a lot for some reason in passing or analogies – not least how much we are all missing the feel of it between our toes with the debate on whether to book a holiday in 2021 yet, or at all.

Talking through our son’s disrupted attempt to attend university (he is in his second year of a three-year course), it became apparent that he didn’t view there having been three equal lockdowns.

Yes, the restrictions may have been broadly similar, and November’s and the current national lockdown may allow some sectors of the economy to operate that didn’t in the first national restrictions last year; but the major difference is the horizon that we are asked to aim for while locked down – the date that it ends.

November he could deal with – it was four weeks, and we had midnight on such a day to aim for and then the full lockdown restrictions would be lifted and although restrictions of some sort would be in place, we weren’t locked down.

The problem with the current national lockdown is that it doesn’t have an end date again – forget the mid-February one first muted when current restrictions were imposed, that’s about as reliable as the Department for Education’s exam algorithm…

And we have lived through this same scenario last year – with future review dates where our own hopes were raised along with the feverish press speculation before the press conference – only to be shattered quickly by the calls to “just stick with it for a little bit longer” once it actually started.

Probably the only time that I have told the children to have no expectations of anything good happening has been before those press conferences in April and May last year – but it saved their hopes being dashed again.

And so that is where our son feels that he is again – nothing to hope for, no target date to get to, not sure when anything does change that it will actually change that much, and will anything ever be like it was again?? No lines in the sand.

Like every family, while we don’t have the answers to when, how or what – we do make sure that we still keep talking things through. We appreciate that we are a lot better off than many in terms of the effect Covid has inflicted on us. But all of us have to find a coping mechanism, and to hang on to there being things to look forward to in the future, whatever shape they take.

I work in commercial finance, and in conversation with one of my lending partners we politely asked each other how the other was and how families were. My contact commented that it just felt like there was a lot of sand stretching out in front of him at the moment – but not many lines in it that he could aim for.

That conversation expanded to the fact that it wasn’t just us personally who could have lost our horizon, and any certainties or targets along the way to it, but business owners and directors were in the same position and expected to move their business and staff forward with them while having the same blinkered view of the path ahead.

To move forward from the present situation, or ‘trade out of Covid’ as I like to term it, a company would potentially need to hire staff, order materials or goods, invest in marketing, acquire machinery or vehicles, spend on outsourced services and many other types of normal activities that businesses do.

To be able to do any or all of these your business may have to secure finance of some description, which would involve analysis of the company being able to afford this funding moving forward.

Directors and owners of businesses will do some or all of the above to meet demand and opportunities that their companies have, and because they know that at certain dates orders will come in, goods will be delivered, or contracts will be signed.

Currently that is proving a very difficult juggling act for businesses to manage, but they are doing their best to see past the government u-turns and promises on dates to set their plans on more probable extended timelines, and a more gradual recovery in activities but one which they have at least got ahead of the game and planned for.

All the way through this pandemic the companies that I have seen faring better are those that have got ahead of the game, and been proactive about solutions for their business.

That is still true now, and I am partnering with companies and lenders to put together realistic and suitable solutions to add the help that is needed now, combined with the scope to allow growth and being able to meet demand, deadlines – and lines in the sand – when they return.

I am helping clients to retain their perspective and their horizon.

How do you want to get funded?

Mark.