Given the events of the past few weeks, we have put together some information which may assist you to budget in the coming weeks. We hope it is of benefit to you and yours.
If you need any assistance in this area email us at email@example.com.
To those in business & especially in times like these, it’s important to safeguard your business assets and its viability to allow you to continue to trade as periods of uncertainty pass.
Firstly, assess your bank & cash balance as of today. Between today and next Friday, consider the income that is due to be received and expenditure that is due to be paid out. What does that balance look like? What can you do to improve this position, either to increase income or decrease spending? Carry out this activity for the coming weeks. We’d recommend you assess at least 4 months calculations. How does that look?
Now, take a moment to review the information below. Have you considered these points whilst preparing your cash projections?
Talk to your bank
All banks have announced that they will offer flexibility to their customers, and they may be able to provide payment holidays or emergency working capital facilities.
AIB – 1890 252008
Bank of Ireland – 01 6113333
EBS – 1850 330044
Finance Ireland – 1890 995998
Haven Mortgages – 1850 654329
ICS Mortgages – 1890 542542
KBC Bank – 1800 939244
Permanent TSB – 0818 502424
Ulster Bank – 1800 435763
Prepare cash flow projections for the next 3-4 months, ideally by week. What are your inflows and outflows. Have you identified a period where pressure is on cash resources? Armed with this information, a tailored solution can be found.
Look for scope to:
- Lower variable costs
- Delay discretionary spend
- Extend your payables
- Expedite your receivables
- Explore supply chain financing options
Use available government supports for working capital
- The Credit Guarantee Scheme supports loans up to €1 million for periods of up to 7 years. Applications can be made to AIB, Bank of Ireland and Ulster Bank. Eligibility criteria apply.
- Microenterprises can access COVID-19 loans of up to €50,000 from MicroFinance Ireland. The terms include a six months interest free and repayment free moratorium, with the loan to then be repaid over the remaining 30 months of the 36-month loan period. Loans are available at an interest rate of between 6.8% and 7.8%. Businesses can apply through their Local Enterprise Office or directly at microfinanceireland.ie. Eligibility criteria apply.
- The €200m SBCI COVID-19 Working Capital Scheme for eligible businesses will be available within the next week. Maximum loan size will be €1.5 million (first €500,000 unsecured) and the maximum interest rate will be 4%. Applications can be made through the SBCI website at sbci.gov.ie. Eligibility criteria apply.
- A €200m Package for Enterprise Supports including a Rescue and Restructuring Scheme is available through Enterprise Ireland for vulnerable but viable firms that need to restructure or transform their business.
4. Engage with Revenue
If you have concerns about your ability to pay your employee wages please refer to this guidance issued by the Revenue Commissioners – https://www.revenue.ie/en/news/articles/guidance-on-the-temporary-covid-19-wage-subsidy-scheme.aspx
If you have concerns about your ability to pay your tax liabilities speak to the Revenue Commissioners, who have advised:
“On an on-going basis, Revenue engages with viable businesses experiencing temporary cash flow or trading difficulties that affect the timely payment of tax. Revenue works very successfully with businesses that engage early to resolve their tax payment difficulties. Revenue will engage with any viable business that experiences temporary cashflow difficulties, including difficulties arising from exceptional circumstances such as the COVID-19 (Coronavirus) outbreak.” See www.revenue.ie.
- Revenue has also posted advice for businesses experiencing trading difficulties as a result of COVID-19. This includes information on tax returns, the application of late payment interest, debt enforcement, tax clearance and customs.
Information for SMEs
- Tax Returns: businesses experiencing temporary cash flow difficulties should continue to send in tax returns on time.
- Application of Interest: the application of interest on late payments is suspended for January/February VAT and both February and March PAYE (Employers) liabilities.
- Debt Enforcement: All debt enforcement activity is suspended until further notice.
- Tax Clearance: Current tax clearance status will remain in place for all businesses over the coming months.
Information for Subcontractors
- RCT (Relevant Contract Tax): the RCT rate review scheduled to take place in March 2020 is suspended. This process assesses the current compliance position of each subcontractor in the eRCT system and determines their correct RCT deduction rate, i.e. 0%, 20% or 35%. As this process may result in a subcontractor’s RCT rate increasing due to changes in their compliance position, the review is suspended.
- Subcontractors and agents are reminded that RCT rate reviews can be self-managed in ROS. Subcontractors can check if their rate should be lower and can then ‘self-review’ to get that lower deduction rate.
5. Check your insurance cover
Check if your insurance policy covers you for an interruption in your business, or a temporary business closure, caused by COVID-19.
6. Be aware of other government supports
- NEW: The government has announced a National COVID-19 Income Support Scheme. This will provide financial support to Irish workers and businesses affected by the crisis.
- The Department of Employment Affairs and Social Protection has introduced a new COVID-19 Pandemic Unemployment Payment (a payment of €350 per week) for the self-employed who have lost business and to those who have lost employment as a result of the COVID-19 pandemic.
- Employees of businesses that need to reduce hours or days worked can avail of the Department of Employment Affairs and Social Protection Short-time Work Support.
- The full range of Enterprise Ireland, IDA Ireland, Local Enterprise Office and Údarás na Gaeltachta grant supports will be available to firms to help with strategies to innovate, diversify markets and supply chains and to improve competitiveness.
- The Department of Employment Affairs and Social Protection and the Department of Business, Enterprise and Innovation will provide a joint First Responder support service through the Intreo Offices and development agencies, Enterprise Ireland and IDA Ireland in each region to provide tailored supports for impacted firms, with objective of avoiding mass lay-offs and buying time for firms to work through the short-term disruptions.
- A Finance in Focus grant of €7,200 will be available to Enterprise Ireland and Údarás na Gaeltachta clients that want to access consultancy support to undertake immediate finance reviews.
- In addition to their current range of business supports to microenterprises, LEOs can also provide business continuity vouchers from €2,500 to assist in preparing any business continuity issues that arise in the current challenging environment. Visit LEOs COVID-19 Business Response for further details.
- Enterprise Ireland has a number of supports available to help businesses mitigate the impact of Covid-19. Their COVID-19 Business Response Plan outlines the COVID-19 supports available.
- The Department of Health has prepared COVID-19 guidance for supply chain workers.
- The government has agreed support for businesses impacted by COVID-19 through commercial rates deferral.
7. In your community
Look at what you and your business can do to help locally. We are living in extraordinary times and we firmly believe that acts of kindness will be rewarded through customer loyalty, new business opportunities etc in the future.