Updated: 2nd February 2021
Businesses such as soft-play centres have been experiencing problems with trade during the recent spell of hot weather in the UK. If your business has been affected by the good weather and you’re worried about its long-term future, there are steps you can take that will help you get back on track.
Depending on the financial position you’re in this could involve cost-cutting or implementing better systems to track your cash flow. On the other hand, your business may be nearing insolvency and require professional assistance for the best chance of survival.
What are some of the indications that your business is being adversely affected by the weather?
So what you can do if the weather is the cause of financial distress for your business?
Knowing exactly how much cash is coming in and leaving your business is a key aspect of good cash management. You need to make sure you have sufficient cash to pay the bills as they fall due, and to know when a cash shortfall might occur.
You can do this by tracking cash on a daily basis to forecast your needs reliably over the next few weeks and months. It’s possible that cutting costs across the board by a small amount could help, or perhaps you can eliminate certain outgoings that no longer serve you.
Falling behind with HMRC liabilities can be particularly worrying given their ability to close businesses down quickly, but you may be able to negotiate a Time to Pay arrangement. You’ll still need to keep up with your current HMRC liabilities, but a TTP can provide the breathing space you need to survive.
If your business has a good record of payments with HMRC and they believe it’s still viable, a Time to Pay arrangement can help you regain financial control by paying your arrears in instalments, generally over an extra period of up to 12 months.
Alternative funding may be the answer to the financial problems your business is experiencing. Options such as invoice finance and asset-based borrowing can provide regular injections of working capital or a cash lump sum that sees you through the current uncertainty.
If your business has entered insolvency but is still viable, a Company Voluntary Arrangement could give you time to trade your way out of difficulty once the weather is no longer an issue. A licensed insolvency practitioner (IP) negotiates new terms with your suppliers and other creditors, and once the agreement is underway, you regain control of your business.
Licensed insolvency practitioners provide invaluable guidance and support when your business is in financial distress. You don’t have to be insolvent to seek professional assistance - businesses at any stage of development can benefit from this input.
We can communicate on your behalf with HMRC, help you set up new funding arrangements, or negotiate with suppliers for a Company Voluntary Arrangement that lets you pay affordable amounts to creditors each month.
Real Business Rescue are insolvency specialists and will help if your business has been affected by the weather. With 100 offices across the UK, you’re never far away from expert and confidential advice. We can provide the professional support you need. Call for a free same-day consultation with one of our licensed insolvency practitioners.
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