Micro, small, medium and large businesses need all the support they can get in these really trying times for business. This includes the self-employed, employees and those working in the gig economy. Below is a summary of the additional measures the Government announced on the 5th of November 2020 by the Chancellor.
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1. Grants for businesses closed by lockdown Businesses required to close in England due to local or national restrictions will be eligible for the following:
For properties with a rateable value of £15,000 or under, grants to be £1,334 per month, or £667 per two weeks
For properties with a rateable value of between £15,000-£51,000 grants to be £2,000 per month, or £1,000 per two weeks
For properties with a rateable value of £51,000 or over grants to be £3,000 per month, or £1,500 per two weeks. Follow this link for more details on this.

2. Self-Employment Income Support Scheme grant extension You will be eligible for this if: (a) You have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants) (b) You declare that you intend to continue to trade (c) You are currently actively trading but are impacted by reduced demand due to coronavirus (d) were previously trading but are temporarily unable to do so due to coronavirus. Please follow this link for more information.

3. Furlough scheme extended Chancellor Rishi Sunak announced that as part of the new national lockdown the Coronavirus Job Retention Scheme (CJRS) has been extended until the end of March 2021. Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme.
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The Coronavirus Job Retention Scheme had been extended for a month is now extended to the end March 2021 with employees receiving 80% of their current salary for hours not worked and further economic support. Click here for full details of this

4. Taxpayers claim tax relief for working from home Launched on 1 October 2020, the online portal has been set up to process tax relief on additional expenses for employed workers who have been told to work from home by their employer to help stop the spread of COVID-19. You can click here to see if you are eligible for this

5. Additional financial support available:

• cash grants of up to £3,000 per month for businesses which are closed worth more than £1 billion every month
• £1.1 billion is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly
• plans to extend existing government-backed loan schemes and the Future Fund to the end of January, and an ability to top-up Bounce Back Loans
• an extension to the mortgage payment holiday for homeowners
• up to £500 million of funding for councils to support the local public health response.

Please click here for more information on this.
 
For more details on any of these click on any of the links above.

If you want some help for your company with regards to the above or you just want someone with the required knowledge and experience in business to guide you on other related matters, please connect with our business advisers at RBSS Consulting Ltd in Romford on 0333 355 1696 or direct on 07796 800 187 or drop us an email. We provide real business solutions for start-ups and existing micro and small businesses in east London and Essex.

One reality all business owners need to face, in some form or shape, is the impact of the predicted economic slowdown on your business. It’s either going to impact directly, because of the sector or industry you are in, or indirectly, through the customers or clients that buy from you.

Some clients of mine have said they have done pretty well during the height of the COVID-19 crisis, but are now feeling the impact because now their client’s clients have less disposable income.  Be it B2B or B2C the story is the same. The guidance given here is about how to pull through such situations as best as possible.

The question is, how do you deal with any economic uncertainty and the changes it brings? More specifically, how do you recover from the changes COVID-19 has brought?  How do you adapt to the 'new normal' imposed on the world, businesses and individuals? This is how to recover. You go through 3 stages.  The response, the recovery and the reconstruction. These phases overlap.  We have been through phase 1 and that’s coming to an end.  Phase 2 is recovery and these are some points to consider:

STEP ONE
So, what has worked well during the response stage? In your immediate response to the epidemic, what has worked well for you? Have you accelerated those plans to digitise some of your services now that you have no choice, or have you been able to cut costs by having some of your staff work from home whilst managing social distancing?

Have there been products or services you have been producing more efficiently during this time? It could simply have been that you have streamlined some of the processes in such a way you may not have thought about before the pandemic hit. Necessity, they say, is the mother of invention. You need to take account of these things that have all of a sudden worked well for you during this time that you can continue with.

Have you birthed a new idea as a result of this that has become one of the new services or products that require development, but when developed can be your ticket to recovery. It will help immensely in the recovery process.  There are some good financial packages out there like the Bounce Back Loan, the Coronavirus Business Interruption Loan Scheme, the Self Employment Income Scheme, Furlough and many more.  Whilst some of these are winding down, use them to leverage your current position as much as you can.​

STEP TWO
Showing leadership.  As an entrepreneur of a micro, small or medium size company, panicking could mean drowning, but strong leadership on the other hand, can be the key to your success.  So far, the British public has generally remained calm and pulled together. This is a huge positive! It is very easy to panic when it looks like there is no way through this and other people are looking up to you for their livelihood and state of mind, especially when you own a business with employees that may have families to feed.

The British government has also played a huge role in helping business with loans and grants, in spite of the fact that a lot of people have also fallen through the net. However, your reaction in the midst of the storm will contribute to the welfare of your business, members of staff mentally and physically too. This is where your true leadership qualities will come to light and should structure your decision making process.

Remaining calm does not mean faking it, but rather being transparent. It would probably appear more realistic if you let your workers know you are concerned yourself without losing control than making light of it and therefore burying your head in the sand, or displaying an attitude of unconcern. It’s better to take the attitude that this change is happening with me, rather than to me.  

This should help improve business performance at a time when staff morale could be at an all-time low if the situation is not handled professionally and a show of empathy and communication is not displayed appropriately. Strong leadership displaying confidence yet transparency is key. 

STEP THREE
Business Health Check. This is a good time to have a business reality check and take stock of where your business is at the moment. How does pandemic affect your business in the current situation and future going forward? And most importantly, where do you want it to be in the future? A business Valuation, Performance and Health Check carried out by one of our Business Advisors is designed to help you shed light and get you to achieve the performance and value that you want.

These sessions will also offer suggestions for business improvement and modelling, or re-modelling. It is also an opportunity to see if your business goals align with your business objectives. If this is not the case, you may even find out that you need to manoeuvre your business in a different direction or bring about a change in your products or services.

The sooner you come to terms with it and bring about the changes, the better for your business. You do need to ask the question about the relevance of your product or service in the short to long term.  You may even pivot to something temporary based on your current core competency.  

A typical example is Rolls-Royce and BAE making ventilators. These changes need to be communicated with facts, sensitivity and focus on the solutions as much as possible with clarity, purpose, and direction especially with those who will be most affected. 

STEP FOUR
Help customers gain regain trust and confidence in your product or service. Simple things like observing social distancing, observing good hygiene practice and things that the client or customer can see and acknowledge that you take them and their health serious is important. If you are a retail outlet or restaurant or in the hospitality industry, customers need to be confident to use your service.

For example, some shops like Aldi have a red and green light in front of their shops indicating when you can come in or not.  They have obvious hygiene points with sanitisers and kitchen towels available to customers, etc.  In a subtle way, they are showing they care for the client, building confidence in the venue and the brand. In the same way, your staff, clients, customers and visitors must know that they are safe in your work environment. 

Offering a client the opportunity to have an online meeting with you where possible, instead of in person is a sign of building trust.  In all of these acts, it’s important that the perceived value of what you do for them remains the same or better. You can get more info on this from the government’s guides on reopening businesses.

STEP FIVE
As a business, you also need to look within and see where you may need help yourself. Be it from the government or other sources if you are struggling. Business mentoring and coaching or sitting down with a business advisor could be a good idea. Entrepreneurs often take care of everyone else but themselves. Take care of your mental health. If you collapse and you are a micro business, the business collapses. The same is true of some small businesses where a lot depends on the owner.  Working from home is not the same as taking a break. 

If you are not sure or in doubt about making your business sustainable in these uncertain times, seek professional business advice, which is what our Business Advisors are for. Ignore the fake news going around which is often the case in uncertainty. Go for objective and professional advice. 

If you can identify with any of the 5 tips and require further insight into key areas to help your company through this challenging economic time please feel free to call and speak to an RBSS Business Advisor on 033 33 55 1696 or drop us an email on the link below. We provide real business solutions for start-ups and existing micro and small businesses.

After 3 months of COVID-19 and during this response phase to the attack, how have some of the finance packages the government put in place been responded to by businesses in the UK.  Apart from the premises business rate related grants and the job retention scheme, some of the other popular funding support schemes that businesses have responded positively to are:

1. Coronavirus Business Interruption Loan Scheme - CBILS
2. Bounce Back Loan - BBL
3. Self-Employment Income Support – SEIS
4. Future Fund and Innovation financial support  - £1.25b

 
Has this been a load of hype or have they been accessible real solutions. How have they done so far?

1. CBIL Scheme - Loan The overall approval rate for the CBIL Scheme remains at 50%. That means 50% failure rate so far.  Its also means that those that applied and were not able to access it may need other forms of support.  Don’t assume that failure means they are not viable businesses, absolutely not. The government needs to be thinking of other solutions for this large group of businesses as they have an impact on local economies and employment and if they run out of cash, they won’t be going down because they are not profitable or credible businesses, but because they have not had the right bridging finance to get them through this torrid time.

The average CBIL loan size has been £194,000 since the commencement of the Scheme. In more recent weeks after the initial rush, the volume of applications has reduced significantly.  This may be due to the bad press and the decline rate of this scheme. Nevertheless, the repayment terms and rates are extremely attractive and between 2.5% and 9.8% depending on individual business circumstances.

2. BBL  Scheme - Loan The average Bounce Back Loan amount remains at the £30k level – One cannot assume that every borrower is applying for the maximum 25% of turnover, however, the anecdotal evidence is that the scheme is helping the micro and SME market. Some sole traders have had problems, especially when they don’t have business accounts or if they do not bank with one of the approved providers.  Sterling and Tide have been a life saver for some micro and sole trader businesses, but others have not had such luck, even when producing all the required documents.

The 80% approval rate and the £20bn+ total lending via the scheme is a huge injection of capital into SMEs and should help with the local economies of where they are based.  It should also help with their long term sustainability. The interest and repayment terms are extremely attractive, that applying for it is nearly a no brainer.

3. SEIS Scheme - Grant This scheme has so far seen 2.3 million claims worth £6.8 billion since it opened for claiming in April. The scheme will be extended - with those eligible able to claim a second and final grant capped at £6,570.  Unlike the original claim of 80% of average monthly trading profits, this extended grant will be worth 70% of their average monthly trading profits, paid out in a single installment covering three months’ worth of profits and capped at £6,570 in total. This has been of immense importance to self-employed business people who have struggled over this tough time.

Individuals can continue to apply for the first SEIS grant until 13 July. Under this first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single installment covering three months’ worth of profits, and capped at £7,500 in total.  

4. Future Fund and Innovation – Grant and Loan This funding targets some of the most dynamic sectors of the UK economy – ranging from tech to life sciences. The government has committed an initial £250 million in funding towards the scheme, which will initially be open until the end of September 2020. The scale of the fund will be kept under review. The £750 million of targeted support for the most R&D intensive small and medium size firms will be available through Innovate UK’s grants and loan scheme. The Future Fund will provide convertible government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors. There have been some challenges with the eligibility criteria for some tech companies as match funding is partly a requirement for some of the loan and also a minimum investment of £250k needs to have been made in the company in the last 5 years.

For more details on any of these click on any of the links above.
If you want some help for your company with regards to the above or you just want someone with the required knowledge and experience in business to guide you on other related matters, please connect with our business advisers at RBSS Consulting Ltd in Romford on 0333 355 1696 or direct on 07796 800 187 or drop us an email. We provide real business solutions for start-ups and existing micro and small businesses in east London and Essex.

You have probably been bombarded with information on the above measures that the Government has taken to support and protect businesses of all kinds against the impact of the COVID 19 virus in the UK. There is a lot of information going out to businesses and employees at the moment. The information isn't static but evolving daily.  I have received many calls and I understand your frustration and concerns. After several conversations with senior staff in Financial Institutions, Trade Body Associations and Funding Associations and reading subsequent follow up documents from the government, things are much clearer. The operational mechanisms for delivery and implementation are still being worked on in some cases.

As you now know, money will not come directly from the government to businesses.  It's a wholesale process and it’s the British Business Bank that will be liaising with selected banks.
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Key highlights however are:
1. The CBILS is being disbursed through the banks and even this is evolving with time
2. The schemes are taking time to set up HMRC and have said they will be ready for April 2020. However, banks are already taking loan applications through their EFG
3. Some of the information is changing rapidly
4. No matter how big or small you are the government is saying schemes will become available, ranging from Universal Credit for the Self Employed to Grants and Loans for SME's
5. Look at your insurance policy under the business interruption section to ensure that any business interruption by viruses is not covered already. The Government will not double fund what is already covered in your insurance.  Some policies have fixed diseases they will cover and some don’t
6. Government will pay 80% of the salaries of staff who are kept (where it can be proven that these staff were about to be let go by their employers due to the virus crisis) covering wages of up to £2,500 a month – Part of the Job Retention Scheme
7. Please note that GRANTS only relate to business rates and you will be contacted directly by the local authority and not vice versa if you are entitled to this
8. Relief for Statutory Sick Pay
9. Mortgage Holidays even for Buy to Let properties
10. IR35 tax reforms postponed for a year
11. VAT and income tax deferments
12. Reclaims for Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.
13. Support for the Self Employed – Please click here for more details 
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For full details regarding CBILS, please click here
 
The key thing to note is grants are all rate related and will be dealt with by your local council. Loans will be through banks, mostly likely through the Enterprise Finance Guarantee (EFG) Scheme already in place, but with 80% government backed guarantees. Job retention will be through HMRC as they manage the payroll program and it is all linked to your reference numbers and UTR. Self Employment support will be through HMRC. Finance terms are from three months up to ten years for term loans and asset finance and up to three years for revolving facilities and invoice finance.

Facing Cash flow problems now, then please feel free to contact us and we will help broker and facilitate access at no cost to you.  We will also offer guidance around eligibility and possibilities for raising finance.
 
If you want some help for your company with regards to the above or you just want someone with the required knowledge and experience in business to guide you on other related matters, please connect with our business advisers at RBSS Consulting Ltd on 0333 355 1696 or direct on 07796 800 187 or drop us an email. We provide real business solutions for start-ups and existing micro and small businesses.