A FIRM which helps businesses in Yorkshire restructure has offered its tips for helping companies survive the impact of the coronavirus pandemic.

Julian Pitts, regional manager partner for Begbies Traynor in the region, outlined how there are many companies that simply do not have the financial breathing space to manage emergency cash flow situation that they are now facing. It is vital that they confront the challenges as soon as possible as its impact will have an immediate effect, he said.

He said: "As a starting point, businesses should talk to their support network. Business insurance might provide the cover required should the company need to stop trading indefinitely. The policy wording should be checked for ‘business interruption cover’ and, particularly, whether there is an extension for ‘notifiable diseases’ - the insurer can advise if this is not clear.

"Talk to the bank about possible emergency finance options. The British Business Bank has now set up the Coronavirus Business Interruption Lending Scheme that will provide the lender with a government-backed 80% guarantee against the outstanding facility balance – so the finance should be attainable for all businesses.

"In addition, the Government has announced schemes to help mitigate the financial impact of coronavirus, with grants covering up to 80 per cent of the salary of workers if companies keep them on their payroll. This has now been matched by grants for self-employed workers worth 80 per cent of their average monthly profits. However, there will still be issues with cash flow for the self-employed as the scheme will not be available until the end of June.

"Businesses should also ask customers, particularly larger companies, to pay outstanding invoices. Morrisons supermarket has led the way with this by paying 3,000 suppliers instantly, regardless of payment period. Small businesses or the self-employed with invoices issued should use this moment to chase for instant payment."

He added that the Government is also offering business support helplines giving advice on how to cope with the impact of coronavirus.

Another option is to ask the landlord for some breathing space if a drop in trade is impacting on a business’ ability to pay the rent. Landlords may provide rent breaks or payment discounts.

Mr Pitts added: "If the business is experiencing a downturn in trade, restructuring business operations could provide more time for recovery going forward. Mitigating losses is key in times of financial distress, so take advice on which parts of your business could be streamlined or cut back. Look into subscriptions and contracts that are not needed at the present time."

He added that the Government had announced additional insolvency legislation, designed to give companies breathing space from creditors enforcing their debts.

"In the current situation, business distress is accelerating on an unprecedented scale and taking swift action to arrest a business' decline is absolutely critical," he added.