How would you feel about getting your business through 2021…
…If you had an additional £50,000 or £100,000 sitting in your bank account?
Not to spend, necessarily…
But there for you, in case the economy takes a turn for the worse…
Or you have sudden cashflow issues…
Or alternatively, if the pandemic throws up some incredible business opportunity you wish to take advantage of.
Would you feel more confident about the months ahead, with that money in the bank?
Or would it make no difference to you?
This isn’t a theoretical question.
For the next few weeks, you could still have access to that money.
You see, the government’s Bounceback and Coronavirus Business Interruption Loan Scheme (CBILS) loans are still available to businesses until 31 March.
They’re there to help companies through the pandemic.
And even if you haven’t needed that help, so far…
It’s worth thinking whether you should take out that loan, as a “just in case” insurance policy – in case any of the scenarios I outlined above materialise.
There is no interest to be paid on these loans for the first 12 months.
So if it turns out you were being extra-cautious and really didn’t need the money, you can simply repay it – no harm done.
And if conditions change for your company – for example, you suddenly have supply chain issues or your industry doesn’t bounce back as expected – you’ll be glad to have easy access to credit.
That is exactly what these loans are here for, because the landscape right now is uncertain and fast-changing.
As I’ve said several times in my emails recently, even if you’ve sailed through the first year of the pandemic, there’s no guarantee you’ll find 2021 easy. Coming out of a crisis is often harder than going into it.
The government has managed to shield many companies and individuals from the full economic impact of this crisis, but cannot continue doing so forever.
This is not a recommendation that you take out a loan.
If you do take it and spend the money, you will eventually have to repay it – with interest (kicking in after 12 months). So there are risks you need to consider carefully.
But it’s certainly worth thinking about.
When you have Insight Associates as your Outsourced Finance Department, we’ll always make sure you’re aware of these types of options…
…And we won’t leave you to work through the pros and cons yourself.
We’ll help you work out whether it’s going to be helpful – and worthwhile – for your business…
…Because we are constantly thinking about how to put your company in the best possible financial position.
Get in touch with me today to find out how the Outsourced Finance Department can improve your financial management – and help your company grow from £1-2 million turnover to £5-10 million and beyond.
Warmly,
Garry
