Are You Having COVID-Business-Owner Stress?

For example, at our office, we have a subscription to Naturebox. But, because of stay-at-home orders, we didn’t want to pause the service. Why? Even though the team wasn’t in the office, I try to drop snacks off to their homes or have them drop by the office and pick something up to keep them going. But in order to budget — we may have to cut back.

Build and utilize a 13-week cash forecast.

Speaking of cash flow, it also would be wise to create a 13-week cash forecast during this distressing time. The reason, according to Martin Gillespie for Cash Analytics, is because of its broad uses.

In this case, it can be used “to identify when and how any potential liquidity shortfalls should hit a company.” As such, it “offers the ability to prepare for, if not rectify, any issues before they occur.”

Another advantage of this model is that it’s “short enough to support agile, tactical decision making,” adds Gillespie. But, it “also takes a long enough view to drive long-term decisions.” Moreover, it’s “sufficient for medium-term and month-to-month cash planning.” And, “it won’t overlap with longer-term plans which can extend years into the future.”

As if that weren’t enough, a 13-week cash forecast can identify any potential liquidity issues. It also provides cash balance visibility. And, because it’s “usually broken down into weekly reporting periods,” it offers “four times greater granularity.”

Meet with your lenders ASAP.

To be honest, this should be an option that everyone should be exploring right now if you’re stressed over money. Why? Well, “if you owe a company money, they want to make sure they get that money rather than run the risk of you going bankrupt, and then they will never see it,” explains Marcus Berkovitz in a previous Due article.

“So, for that reason, lenders are often open to the idea of making it easier for you to repay,” he adds. “Many have a way to restructure debt and help you for the short term, with options such as payment holidays for people who are struggling.”

You may believe “that all lenders are unscrupulous and will not negotiate, but this isn’t the case,” says Marcus. Remember, “they would rather get the money back with minimal hassle, plus some of the restructures of debt can even see them earn more money in the future.”

For example, banks like American Express, Chase, and Captial One are waiving interest and late payment fees. While this is on a case-by-case basis, it’s definitely worth reaching out to see if your business is eligible.

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