With unprecedented times within the hospitality industry, many of our accommodation providers have had to shut their doors to guests and regular income.
With the ‘no vacancies’ sign still swinging, business owner’s now face the challenge to be prepared to hit the ground running when the lockdown ends, whenever that may be.
Preparation is key and one area that will be of great concern is cash flow for all independent, country inns, guest houses and self – catering businesses.
Below are a few suggestions that should assist with the challenges that lie ahead:
- Protect your key asset’s – staff
Most businesses in the hospitality sector will be adopting the furlough scheme so make sure your staff are paid promptly and ensure you negotiate with your bank to underwrite any future payments before HMRC rebates are received.
- Look at your bank statement
look at your direct debits and suppliers to see who you can defer, cancel or ask for holiday payments this will protect unnecessary spending.
- Outstanding debtors
Now is the time to chase for those outstanding payments but if you can offer payment holidays with your customers it will build loyalty for the future.
- Build your war chest
Siphon PAYE and VAT from the previous quarter move this into a separate account, in case it’s needed as a fighting fund.
- Business Rates
The government is supporting businesses with a 12-month business rates holiday for all hospitality and leisure business in the UK.
- HMRC Grants
There is funding available of £25,000 is available for hospitality and leisure businesses with property with a rateable value of between £15,000 – £51,000 although not immediate cash it will help in the long term – Read more
- Interest free overdrafts
Speak to your bank about an interest free overdraft for the next six months
- Bank Loans
The government have insisted that now is the time for banks to assist businesses by offering loans with favourable rates, this is detailed under the Coronavirus Business Interruption Loan Scheme (CBILS) – Read more
For further advice and support:
‘The Preparation for tomorrow is doing your best today’
H Jackson Brown Jr