Small businesses help in a Coronavirus world

Its a challenging world in which we are living right now and if you are a small business or freelancer, I am sure many of you are worried. The key here is to take action now before it's going to get worse and it will. I have compiled a quick checklist of ideas and the latest from the Budget. Do not just hope things will improve. Its important you take action now

* Your landlord - see if you can get a rent free period to assist cashflow. They would rather have you paying something or be forced to move out

* Reduce your staff costs. I know some airlines have given staff 8 weeks unpaid leave, others have reduced working weeks and 20% wage discount. You should consider the impact of at least 3/4 months without income

* Reduce non-essential costs eg magazine subscriptions.

*Business rates - You can apply to defer tax payments via new extensions to Time to Pay process – HMRC will be opening a specific hotline and ￡3,000 cash grant for businesses that are eligible for small business rates relief

*Banks or finance suppliers - see if you can get a 3 month payment holiday

* Insurance - does your insurance policy include business interruption - this could maybe include a claim

* Ask for extended payment terms with suppliers.

* You can claim a 100% refund for statutory sick pay for the first 14 days your employees are absent if you employ under 250 people;

· * You can apply for up to ￡1.2m of loans from banks under the Business Interruption Loan Scheme, if you employ under 250 people. The Government will back 80% of the loan value, encouraging banks to lend – similar to the existing Enterprise Finance Guarantee scheme, but with the additional benefit that businesses will not be charged fees to enter into these loans;

* Employment Allowance for Employer National Insurance Contributions is increasing from ￡3,000 to ￡4,000, with an average savings of ￡850 per annum; and

* Start-up loans programme extended by another year - ￡130m (local provider being GC Business Finance - https://businessfinance.growthco.uk/funding/start-up-loans/) ; and

* The British Business Bank has been allocated a further ￡200m to lend to small businesses that are scaling up.

More advice from the NHS https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19