The COVID-19 pandemic has turned all aspects of our lives upside down and business cash flow is no exception. The good news is your business is not powerless against the economic impacts of the virus. There are steps you can take to shore up your cash flow and safeguard your business.
When it comes to cash flow, it’s fair to say there are typically a couple of objectives. You want your business to have operating, investing and financing cash flow. And whether you’re turning a profit or not, you want this cash flow to be positive.
Chances are the coronavirus pandemic just blew out your timeline on being cash flow positive, if you weren’t there yet. And if you are turning a profit, this crisis has no doubt thrown a spanner in the works. But whether your business was cash-flow positive or negative pre-crisis, it’s essential you pay close attention to your cash position now. This means seeking fresh sources of capital and cutting or deferring any costs you can. Effectively you want to increase the money coming in and decrease the cash flowing out.
Here are our tips to help you manage the current capital and cash flow crisis. Let’s start by looking at some new ways to cut your company’s outgoings during the pandemic.
1. JobKeeper Payment
Through the JobKeeper Payment scheme, the government has committed to paying $1500 a fortnight per employee to employers and also to eligible sole traders. Applications opened on 20 April and will close at the end of May. This scheme is well worth considering if you’re a sole trader, or a start-up with highly-skilled employees you can’t afford to lose.
To qualify to access JobKeeper Payment as an employer a few conditions apply: