As we head into another period of uncertainty with lockdowns taking effect over the country, we want to assure you that as your credit management specialist we are here to help your business now and over the coming months. We have assisted with keeping many businesses afloat during in the GFC and we are willing and able and waiting to assist your business through the COVID crisis and the following financial crisis.
Remember, EC Credit Control was born out of the 1987 share market crash where we assisted many clients due to our knowledge of SME businesses. This also saw a surge with the number of new clients that came into the EC Credit Control ranks.
To provide you with some useful tips we thought it was a good time to outline some assistance EC Credit Control can provide as well as a summary of what the government is providing businesses to help them get through the current times.
How can we help you right now?
We want to help as many people as possible to ensure you are prepared once this unprecedented turmoil subsides and business start to perform once again.
To facilitate this I am scheduling free 15 minute catch up sessions either by phone, ZOOM, FaceTime, Skype etc with any client that would like insights into what is the best strategy in respect to:
1. Reviewing your terms of trade and verifying any risk.
2. The use of your current documents and the process to become a secured creditor through the PPS register. Directors guarantees and how they can help?
3. The use of Terms of Trade in collection activity; what legal leverage do you have?
4. Trade supply chain challenges, subcontractor agreements, building contracts and cash flow.
5. Hire Industry challenges; what it could mean if your client goes into administration/ liquidation for your hired asset. What do you need to do to mitigate this risk?
6. Briefing your staff on best practice and helping them understand the importance.
If you would like to schedule a 15 minute call with me, simply reply to this email with a time and date that best suits you or call me directly.
Where should you be focussing?
As a business owner, there’s one key thing you need to totally focus on now – keeping your business alive during these difficult times. It’s not all doom and gloom either – withstanding the tough times sets a business up to be a fast turning cash flow business when everything bounces back in a positive way in the future.
Remember that while cash flow is under control then so is your business. Downturns can be scary in the moment, usually because there is no plan in place for your business and the world around you appears to be panicking.
If you take actionable appropriate steps to create a Continuity Plan, then in reality a downturn is just a stop gap to the next upturn, where your business will be cash flow fit and ready to take full advantage.
We are adamant you need to build a cash “war chest” which will let you keep trading through the coming difficult months.
Surviving a downturn: 5 key areas you need to consider immediately – this article covers the 5 key things you can do now as a business owner, including building your cash “war chest”. If you are an employee you may also find the tips useful and wish to share this with the owner: Read more here
COVID-19 – Available Business Support – The New Zealand Government has offered a $12.1 billion package providing for businesses to help them get through the current times. We are certain this package will be expanded as time continue access to these packages is easy and can mostly be completed online with a very quick response. We have summarised this package for you here. Read more here
The current package includes:
• Initial $500 million boost for health
• $5.1 billion in wage subsidies for affected businesses in all sectors and regions
• $126 million in COVID-19 leave and self-isolation support
• $2.8 billion income support package for our most vulnerable, including a permanent $25 per week benefit increase and a doubling of the Winter Energy Payment for 2020
• $100 million redeployment package
• $2.8 billion in business tax changes to free up cashflow, including a provisional tax threshold lift, the reinstatement of building depreciation and writing off interest on the late payment of tax
• $600 million initial aviation support package
While the markets are responding it will take a little while to filter through to business, but let’s take this opportunity to best position your business for the future and get your debts loaded today and we will work them now.
Also, remember that I am here should you wish to book a free 15minute session – just let me know by either responding to this email or calling me directly.
027 713 2128