AIM-listed Marlowe Plc has acquired wastewater treatment and compliance services provider WPL Limited for an enterprise value of £10 million. With headquarters in Waterlooville, Hampshire, WPL…
For many clients accessing additional funding as soon as possible is going to be critical. In light of the Government’s initiatives and the anticipated volume of applications, it is important that you act now to prepare and give yourself the best chance of accessing funding in a timely manner.
The Chancellor’s announcement regarding £330bn of emergency loan funding for businesses is expected to be facilitated and administered directly by banks and other debt lenders. It is likely that in the coming weeks, or sooner, these lenders will be inundated with businesses seeking emergency and accelerated facilities in addition to payment holidays on existing debt.
Therefore it is important to prepare so you can access appropriate funding as soon as possible. Lenders will need companies to provide key information, specifically: projections, summary of historical results and impact analysis of Coronavirus. This information can be prepared now and options reviewed to assess the most appropriate funding source.
For those clients that require support to produce this information, PKF Francis Clark has template documents to streamline the process as well as providing a review of the options available.
In addition, practical steps to take to assist cash flow in the short term include:
- In the immediate short term consider what payments really need to be made, can large payments be restructured, consider HMRC time to pay schemes and any hardship grants that may be available;
- Speak to your funders to seek capital holidays on existing loans;
- Cash flow forecasting: Daily cash flow modelling moving to weekly on a receipts and payments basis may unlock headroom and give time to implement other actions;
- Working capital modelling is essential as many finance is based on working capital assets (debtors/stock);
- Stress testing: stress testing forecasts to test cash headroom and how to manage under different scenarios;
- Loan compliance: check covenants compliance in existing debt facilities and on any further available drawdowns;
- Consider your cost base: Look at your cost base and consider what is required in the short to medium term and the potential to flex and/or restrict major expenses. Review the costs and be bold in decision making – are they non-core or unnecessary for survival.
We can help you prepare the documentation you need and have templates ready to go.
If you require support during these challenging times, please do contact us.