12/11 Why Should You Include Financial Scenarios With Your Business Loan Application?

You will be aware that the application deadline for three Government-backed loan schemes has been extended until 31 January 2021. Applications have been extended for the Bounce Back Loan Scheme and the Coronavirus Business and Large Business Interruption Loan Schemes.

Banks are seeing businesses who have previously accessed CBILS and Bounce Back funding now returning for more support. Businesses now also have the option to potentially extend the existing CBILS loan terms from 5 to 10 years and access further funding. Many other businesses are now requesting financial support for the first time.

Robust and transparent financial modelling which clearly articulates the risks and opportunities that lay ahead is now critical for the success of an application. The Banks need to be confident that the funding they are releasing will be secured by the British Business Bank. Your planning should include:

  • Supply chain disruption scenarios – both operational and financial. (What if a major customer asks to extend their credit terms as they have cashflow issues? What if a supplier increases their prices as another major competitor in their market has a manufacturing breakdown so demand exceeds supply?)
  • Projected market demand changes and the subsequent effects on your business cashflow. (Could your business survive another 4-6 week Government sanctioned lockdown?)
  • Adjusting to post-Brexit legislation. (Will your EU customers look to source their products elsewhere within the EU, do you need additional staff to facilitate the additional workload?)
  • Cyber security threats, particularly if an increased amount of your business is conducted remotely. (How robust is your website and network security?)
  • Skills shortages (What is the impact of your factory shutting down if a staff member tests positive and half your workforce has to isolate? Have you had to make skilled staff redundant? Are your finance team furloughed?)

Our Queensgate consultants have the expertise to help you react quickly and can assist your business or clients in pulling this vital information together and submitting to the Bank. We can also liaise with the Bank to answer their queries and demonstrate to your lender that your forecasts are a result of careful calculation and are based on valid assumptions.

If you would like professional help with scenario planning and a loan application for your business, get in touch. We will talk to you in confidence either over Microsoft Teams or in your Covid-secure workplace.

Contact Queensgate Management today for free business support in confidence

We offer a 1-hour FREE consultation for businesses, conducted in confidence either over Microsoft Teams or in your Covid-secure workplace, to give business leaders an opportunity to share their concerns and find solutions. To arrange a 1-hour free session with one of our experts, submit your details through the form below and start planning your business future with confidence.

NB Some elements of the Winter Economy Plan are devolved and therefore support may differ in Scotland, Northern Ireland and Wales. Do not hesitate to contact us the the latest guidance and update. Please note that our consultation sessions are limited to one per business.

Queensgate Management making business more manageable, profitable and enjoyable.

07/10/2020 Queensgate Management Offer Free Consultation to Businesses

This year has been and continues being very challenging for businesses due to the Covid-19 pandemic. We are all navigating unchartered waters and adapting to the many changes our businesses are facing each day. With further changes ahead as the UK prepares to leave the European Union, it has never been more important to assess the strategies we have in place to ensure the financial health of our businesses.

The Chancellor of the Exchequer, Rishi Sunak, delivered his Winter Economy Plan in late September outlining further measures to support businesses and workers for the next six months. In this newsletter, we offer insights into his statement and outline how our experts at Queensgate Management can support your business in the months ahead.

CBILS and Bounceback loan applications

The Chancellor announced that the above loan funding application period is being extended to the end of November 2020. Our experienced staff at Queensgate Management can support your business in preparing financial projections for your chosen funder and liaise with the funder on your behalf. This makes the process more manageable allowing you to concentrate on the day to day running of your business.

It was also announced that the period for repayment of these loans could be extended up to 10 years from the original five years. Our Queensgate Management team can help you model various scenarios and repayment periods as part of our services.

Every business is having to adapt and change how they deal with their customers, suppliers and employees. Financial modelling gives the management team insights as to how the future may look and if any funding support is required.

Job support scheme and short term cashflow

We can help you model the cash requirements for the next 12 weeks and train your staff on how to update this going forward. This may be useful for identifying the impact of staff re-organisation in terms of the Job Support Scheme from 1st November. This scheme is available to all businesses even if you haven’t previously furloughed staff.

VAT deferral payment scheme

Businesses who deferred their VAT payment due between 20 March and 30 June 2020 were due to pay the deferred VAT by 31 March 2021. HMRC will be releasing details of a repayment scheme allowing businesses to repay the deferred VAT over 11 equal installments up to 31 March 2022. You will be required to opt in to the scheme for which details will be released in early 2021.

Our team of trusted advisors at Queensgate Management can help you model if you will be able to fund the deferred VAT entirely in March 2021 or if the installment scheme is something you need to apply for.

Queensgate Management making business more manageable, profitable and enjoyable.