Top tips to make your cash last longer
We talk about supercharging your cashflow a lot, but it seemed pertinent to get a quick blog out to highlight ways that you can quickly make a difference, during the challenges we’re now dealing with.
Keep an eye on our main Stay Positive page, for more advice and support during COVID-19, which we’ll keep updating and adding resources to.
Get your cash in quicker
So what can you do to get cash in quicker?
- Invoice immediately for work done, don’t delay
- Negotiate stage invoicing with customers for work in progress
- Chase cash in harder than you ever have
- Negotiate time to pay arrangements with customers. If they can’t pay you now, can they pay you over a couple of months?
Use your imagination
How else can you generate income?
- If you’re a cafe, can you arrange takeaways or delivery?
- If you’re a driver, can you deliver essentials and food?
- Do you have a techy whizz in your team who could update your website and branding?
- Can you sell vouchers or encourage future bookings?
- What can you do to build or keep a loyal following?
Keep hold of your cash
What can you do to hold onto your cash longer?
- Make use of HMRC initiatives
- HMRC’s new Time to Pay helpline will help you arrange a longer time to pay for your taxes
- New Time to Pay number is: 0800 0159 559
- VAT due between 20 March 2020 and 30 June 2020 is being deferred til 31 December 2020
- Self assessment July 2020 payments are deferred to 31 January 2021 (and may not even be due if your trade has suffered)
- Arrange time to pay with your own suppliers
- Can you arrange a holiday or delay on your commercial rent?
- Make use of the Government’s 3 month mortgage holiday
- Speak to any finance providers to delay or spread payments for hire purchase, leases or finance
- Review your bank statements, both personal and business, and cut any unnecessary expenditure
Make use of available funding and grants
- Check out business grants available.
- Check out the business interruption loan scheme.
- You could use this to pay off existing loans, or just have a buffer, even if you don’t ultimately use it
- Make sure you apply for the 80% funding for your “furloughed” workers.
What other ways can you get cash in quicker, and hold your cash for longer?
We must view this as short term, so everything you put into place now, will help you to come out stronger the other side.
We’re in this together, and we’re here for you.
Stay Positive, Stay Safe.