‘Steps to secure your hotel’s cash flow’

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:

Valuable Help For Small Businesses Affected by Coronavirus

‘The Preparation for tomorrow is doing your best today’

H Jackson Brown Jr

Leave a Reply

Your email address will not be published.