Keeping your business afloat throughout the Covid-19 pandemic

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Keeping your business afloat throughout the Covid-19 pandemic

March 19th, 2020, Legal Updates, News

In these unsettling times, it’s inevitable that many businesses will suffer and, sadly, some will be unable to withstand the effects of this unprecedented virus. That’s not necessarily the case for you though; we’re here to provide options and possible solutions for keeping your business afloat.

However, it’s likely that you will have already found yourself affected in one way or another, either as a debtor or a creditor.  Therefore, it’s vitally important that you address the issues you face. Here are a few things you may need to look at to help your business survive the next few months:

  • Check through your business insurance to find out what, if anything, you may be able to claim
  • Review your employees’ positions. By now you should have introduced measures to keep them safe. Make sure you’re clear about their rights and benefits regarding sick leave and other relevant factors
  • If necessary, reach out to your sundry creditors to begin a dialogue. Cash will probably graduate from being King to being the Emperor, and everyone will want to be paid quickly for their products and services.  It’s far better for you to engage now with those you may have trouble paying, rather than waiting and risking matters becoming difficult to deal with later
  • Remind your debtors that it’s time to pay up! Ask anyone that owe you money to settle their bill now, so that you have the cash in your bank rather than theirs
  • If you’re concerned about paying your tax due to the impact of the Coronavirus, please note that HMRC are being proactive in helping self-employed people and businesses at this time.  They’re currently staffing a helpline with 2,000 call handlers who can discuss installment arrangements, suspend debt collection proceedings and offer general practical advice (the helpline number is 0800 0159 559)
  • If things get really bad, don’t immediately consider entering into a terminal Insolvency appointment such as liquidation. There are other options, such as a CVA or even an Administration that could buy you some time via the statutory moratorium if necessary.

Our team of legal experts can help you with any or all of these things. We’re continuing to work throughout the pandemic with just some slight tweaks to our business practices for the time being.

For example, we’re not all office-based at the moment, but we are all still available to speak with you by phone, Skype or Facetime.

If things look bleak right now, remember – this is not a permanent situation and it will improve.  Nobody knows when, but hopefully life will return to normality by mid-summer. In the meantime, stay safe, well and positive – and feel free to get in touch for advice on any business matters.

However, if you have any questions or concerns, contact GSC’s Insolvency & Restructuring expert Richard Curtin directly on [email protected] or 020 7822 2224.

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

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