AS we look towards a return to some normality, there remains an underlying concern that many businesses will face some challenges. Knowing how to navigate these will be the key to survival.

Be mindful of deferred debts: A payment holiday is a postponement – any liabilities that have been postponed will need to be paid at a future point in time. These deferred payments need to be factored into your cashflow forecast to ensure that they are not missed once your business starts trading again.

Consider funding: You may need to consider additional funding to assist you at some point. If so, caution should be exercised when opting to increase your debt obligations.

Where you have an existing facility in place with your bank, ensuring that additional borrowing does not breach the terms of the existing covenant is important.

Taking advice on this issue will help you stave off any challenges at a later date and make sure that as a director you are able to maintain control of your business if it does not recover as quickly from the lockdown as you might have anticipated.

Use forecasts as a decision-making tool: Understanding your cash position in the short and medium-term will help you to assess what steps you will need to take in order to keep your business moving. Devising forecasts with different scenarios will help you to identify problem areas.

Once you have ascertained what your future position is likely to look like, that will help guide you as to what steps you need to take next and whether you need any external support to assist you with implementing your plan.

Seek advice early: Cash (or lack of it) has been an issue for many businesses, no matter what size they are. Many businesses may be facing a cash shortfall in the not too distant future, especially if they have been adversely affected by the lockdown restrictions.

If you are one of those business owners, seeking advice now will help you understand your options as you look to recommence trading.

If you have concerns about your ability to recommence trading or would like to discuss the challenges you are currently facing, call Rob Adamson on 07970 731804 or email