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.

22/09/2020 Liquidity – how quickly can your business convert its assets into cash?

One of the key objectives of working capital management is to ensure the liquidity of a business. Basically how quickly can it convert its assets into cash? Areas to consider to improve the working capital cycle of your business are:

· Can supplier terms be extended?

· Stock control, ensure there is enough to meet the expected level of demand but not too much where cash is tied up. Has the current crisis affected lead times?

· Effective credit control, monitor debtors and focus on cash collection.

· Check credit worthiness of customers.

There are clearly a number of challenges facing businesses currently, however there are a number of strategies businesses are adopting to survive these uncertain times and we’re here to help you and your business plan the path to recovery.

Contact one of our experts today to see how we can help you.

Queensgate helping make business more manageable, profitable and enjoyable.

15/09/2020 Do you have any skeletons on your balance sheet?

There is such a focus from owner managers on the income statement of the business that all too often the balance sheet is neglected.

The balance sheet is a statement of a company’s assets, liabilities and capital at a specific point in time and the accuracy of it ensures owners have a clear view of their financial position.

Balance sheet account reconciliations should be carried out at the end of a period, usually either monthly, quarterly or annually, both to the books and records of the company and to external third party evidence to make sure they are correct. If the balance sheet is not correct, it could result in management making decisions based on incorrect information which could result in a financial loss.

Performing monthly balance sheet reconciliations can help identify problems such as incorrect accounting or fraud and is crucial to understanding and evaluating the financial position of your business.

Should you require any assistance, please do not hesitate to contact one of our advisors for a free consultation on enquiries@queensgatem.co.uk or call 07917 373432.

Queensgate Management helping make business more manageable, profitable and enjoyable.

03/09/2020 COVID-19: Scenarios Forecast Key To Business Success

Are you a business still struggling with the impact of COVID-19 then we can help you forecast various scenarios to see whether a CBILS loan or Bounceback loan may help.

The CBILS scheme is for loans > £50k and is due to close at the end of September 2020.

The Bounceback scheme is for loans < £50k by end of October 2020.

Why not book a free consultation with one of our advisors today -email enquiries@queensgatem.co.uk or call 07917 373432 and talk to one of our experienced advisors.

Queensgate Management helping make business more manageable, profitable and enjoyable.

29/08/2020 The Importance of Accurate Management Information

What does your management information tell you?

Management information (MI) is important in any business as it provides accurate real time information which allows you to assess performance against benchmarks and specific KPI’s.

Effective MI will help analyse trends and provide the data to help make informed decisions. For example it will allow you to monitor sales volumes which will help to plan staffing
levels more efficiently and manage stock holdings to meet expected demand.

MI gives you greater control over your business. It allows you to compare performance with the same trading period in previous years and against budget highlighting any potential
issues. Costs can be reviewed in detail and issues dealt with proactively rather than reactively.

Non-financial key performance indicators can be as important for example customer satisfaction and they should form part of the MI pack.

This is a broad overview of the effectiveness of MI and how it supports the achievement of a company’s financial
management objectives. Please get in touch on enquiries@queensgatem.co.uk
or call us on 07917 373432 to find out how we can help further.

Queensgate helping make business more manageable, profitable and enjoyable.

23/08/2020 Streamlining accounting processes saves time/ money and reduces the risk of human error

Streamlining refers to the improvement of the efficiency of a certain process. It can be done either by automation, simplification of tasks, or elimination of unnecessary steps using new methodologies or technology.

This enables finance teams to concentrate on strategic financial information and recommendations that can support a business reach its full potential.

A recent Queensgate client assignments resulted in their business streamlining the process between their bespoke sales/production software and accounts software. This has resulted in freeing up almost 2 days work per month for one of the Accounts Team.

If you would like us to review your current systems to see how these may be improved please contact us on enquiries@queensgatem.co.uk or call us on 07917 373432.

Queensgate helping make business more manageable, profitable and enjoyable.

21/07/2020 The Importance of Credit Control for Business Health

Credit control is vital to every business as overdue invoices ultimately affect cash flow and performance. With cash flow issues and bad debts being the number one reason small businesses fail it is important that your business has robust credit control processes and procedures in place. Does your business suffer from any of the following?

☑ Late paying customers/overdue debts?
☑ Having to write debts off?
☑ Lack of time and resources to chase debts?

Effective credit control will get you paid faster, improve your cash flow and allow you to focus on what you enjoy most – working with your customers and providing them with the goods and services you are passionate about.

If you need support establishing credit control procedures to reduce the level of overdue and bad debts then contact us for a free consultation on enquiries@queensgatem.co.uk or call us on 07917 373432 and talk to one of our experienced advisors. We are here to help.

17/07/2020 REMINDER: Firms Urged to Reinstate VAT Direct Debits

If you are a UK business and have taken the option to defer your VAT payment, you must remember to reinstate your direct debit to pay your next VAT bill on time in order to avoid incurring a fine. The VAT payments deferral scheme ended on 30 June 2020.

☑ Re-establish your cancelled direct debits as soon as possible and in enough time for HMRC to take VAT payments.
☑ Submit your VAT returns are submitted as normal going forward.
☑ Pay the VAT in full on any payments due after 30 June 2020.

Our financial experts will keep you up to date with the latest financial news and Government guidelines. Sign up to our newsletter – https://bit.ly/2NS819q.

Queensgate Management – helping your business thrive through a changing world.

13/07/2020 Registrations open for Eat Out to Help Out Scheme

Chancellor Rishi Sunak announced the scheme as part of his Summer Budget Statement on 8 July, to encourage diners to eat out of home during the month of August. It can be used all day, every Monday, Tuesday and Wednesday from 3 August to 31 August 2020 to offer a 50% discount to diners, for up to a maximum of £10 per person (adult and child).

Registrations open today. To find out how to register your establishment visit https://bit.ly/3eoOSaj.

Queensgate Management – helping your business thrive through a changing world.