The PM’s announcement earlier in the week gave the nation a much-needed boost. In addition to seemingly providing meme creators with plenty of inspiration, it’s also given residents of the UK the first clear exit path since the start of the 1st lockdown almost a year ago.
For businesses, there’s no doubt that this will be very welcome news. For some, such as shops, gyms, hairdressers and theme parks, the date for resuming business of 12th April doesn’t feel too far away, while for others the wait for 21st June will still seem agonisingly distant. So, what will be at the forefront of business owners’ minds?
How can I preserve cash-flow?
This will be one key question. For many businesses – though certainly not all, government funding has helped to bridge the gap in revenue over the past year. Furlough schemes, Bounce-Back Loans and the Coronavirus Business Interruption Loan Scheme (CBILS) have all played their part. But even with this injection of cash, businesses should demonstrate prudence when considering what to use it for. Despite a deferral in repayments, interest on these loans can still be significant and could simply be stalling the cash-flow problem for further down the line.
Absolutely critical will be modelling the first 3 months of business post-lockdown. This will help businesses to make level-headed financial decisions and will present business owners with some clear rules around establishing trade-terms, payment deadlines and any further funding lines that need to be sought.
Insurance and how to pay for it is another key consideration. Insurance cover is an unavoidable business requirement but there is an alternative to a lump-sum cash payment to meet the cost. With keen rates provided by Premium Credit, businesses can alleviate the need to pay out a lump sum just as they start to get the cogs of their business turning once again. Insurance Premium Finance is a great way to pay for cover and spread the cost. In order that we help our partners communicate these benefits effectively, we’ve created a summary of benefits for you, as well as a version for your clients. If you have any further questions, please don’t hesitate to contact one of the team.
We've created two helpful guides on the benefits of premium finance, one for you and another which can be passed directly to your clients.
Click the links below to download.