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Dealing with short-term cash-flow
BUSINESS LIQUIDITY - COST CONTAINMENT, CASHFLOW, ACCESSING FINANCE & FUNDING
Responding to questions from Industry on Coronavirus (COVID-19)
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How do I deal with short-term cash-flow issues?
01Cash Needs
Determine what are the cash needs of the business
03PurchasesReduce purchases (variable costs can be controlled)
05SuppliersTalk to your suppliers
02Cash FlowPrepare a cash-flow statement for the next week and 1-3 months
04Debtors
Follow up on all your debtors
06Rate Charges
Discuss Rate Charges schedules with Local Authorities
Payroll – VAT - PAYE/PRSI – Rates - Suppliers - Monthly direct debits - Bank repayments
DEALING WITH SHORT-TERM CASH-FLOW
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Operational Cost Management
BUSINESS LIQUIDITY - COST CONTAINMENT, CASHFLOW, ACCESSING FINANCE & FUNDING
Responding to questions from Industry on Coronavirus (COVID-19)
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How do I reduce costs?
02Understand your cost base – complete a breakeven analysis
01Appoint a cross-departmental team for cost reduction management
03 Freeze on all purchases
OPERATIONAL COST MANAGEMENT
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How do I reduce costs? Close outlets – Restaurant, Leisure Centre/Spa, etc.?
Reduce your opening hours/reduce labour cost?
Reduce your menu offerings?
Change from buffet to table service to minimise food waste?
CAN YOU…
Close off a bedroom floor?
Reduce HVAC/lights usage in unused areas of the property?
OPERATIONAL COST MANAGEMENT
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How do I reduce labour costs?
01Have you reduced unnecessary working hours - for p/t and casual?
02 Have you removed overtime?
Can staff work across different departments?04
03Have you reviewed reducing working/opening hours?
05Do you need to consider short-time working or temporary layoffs?
Typically a hotel’s biggest single expense
OPERATIONAL COST MANAGEMENT
06Review Government Supports
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What support is available to employees with reduced working hours?
OPERATIONAL COST MANAGEMENT
Government Supports for Coronavirus affected businesses
Jobseekers Payment
Applications through www.mywelfare.ie
Short Time Work Support
Employees on a reduced working week can apply for a Short Time Work Support.
www.gov.ie/en/service/c20e1b-short-time-work-support/
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Engaging with yourBank
BUSINESS LIQUIDITY - COST CONTAINMENT, CASHFLOW, ACCESSING FINANCE & FUNDING
Responding to questions from Industry on Coronavirus (COVID-19)
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What support can your financial institution offer?
ENGAGING WITH YOUR BANK
Talk to your Relationship/Bank Manager promptly
Will require you to complete a reforecast of cash-flow for the next 1-3 months
Consider/discuss - what you need?
Discuss what proactive measures you are taking to manage cash-flow
Working capital, overdraft or a moratorium on principal repayments?
Important to understand the costs and impact of any financial support
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Bank Responses to COVID-19 ImpactThese supports will all be available based on individual businesses needs assessment
For a list of full supports go to
aib.ie/covid19/business
For a list of full supports go to
corporate.bankofireland.com/covid-19-support/
For a list of full supports go to
digital.ulsterbank.ie/business/support/coronavirus.html
ENGAGING WITH YOUR BANK
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Government Supports for Coronavirus Affected Businesses
BUSINESS LIQUIDITY - COST CONTAINMENT, CASHFLOW, ACCESSING FINANCE & FUNDING
Responding to questions from Industry on Coronavirus (COVID-19)
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What support packages are available for Irish businesses?
GOVERNMENT SUPPORTS FOR CORONAVIRUS AFFECTED BUSINESSES
€200m package for Enterprise Supports through Enterprise Ireland
04
www.enterprise-Ireland.com
€200m SBCI working capital scheme for eligible businesses. Loans up to €1.5m at reduced rates.
01
www.sbci.gov.ie
Loans up to €50k for all small tourism businesses (accommodation, activities and attractions) where a reduction in turnover is projected at over 15%
03
www.microfinanceireland.ie
Credit Guarantee Scheme through SBCI. Loans of up to €1m at terms of up to 7 years.
02
www.sbci.gov.ie
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National Supports Available
GOVERNMENT SUPPORTS FOR CORONAVIRUS AFFECTED BUSINESSES
A Finance in Focus grant for Enterprise Ireland and Údarás na Gaeltachtaclients of €7.2k for consultancy support to undertake immediate finance reviews.
01
www.enterprise-ireland.com
Local Enterprise Offices are providing vouchers from €2.5k to €10k, with 50:50 match funding to support business continuity preparedness, innovation and productivity.
02
www.localenterprise.ie
Illness benefits temporarily rise from €203 per week to €305, available from day 1 of illness (for max of 2 weeks) if medically certified and self-isolating due to COVID-19 diagnosis rather than after the sixth day
03
www.gov.ie & www.citizensinformation.ie