Rocky Road To Recovery

Over the last few weeks we have started to see an increase in the number of enquiries from Company Directors and Individuals seeking financial help and debt counselling as the result of COVID-19.

As a multi-discipline firm Orchard Financial Solutions Ltd is well placed to consider various financial solutions for clients experiencing financial hardship. Be it re-structuring or raising finances for businesses via Orchard Business Finance; reviewing residential mortgage via Orchard Mortgage Solutions; and finally looking at more formal insolvency options through Orchard Debt Solutions.

When dealing with a Company Director or Individual with financial problems we don’t immediately consider formal insolvency procedures as the first option. Liquidation or a CVA are not necessarily the best option for a company nor is Bankruptcy, an IVA or Debt Management Plan the best option for an individual. These solutions will only be considered when all others have been exhausted.

In the current climate lenders are working with borrowers and offering payment holidays, extended terms, zero interest on financial products to both domestic and commercial customers. Taking advantage of such offerings could be all that is needed to take pressure off cash flow.  Even HMRC are treating creditors with compassion during these challenging times. HMRC are allowing those experiencing financial hardship to defer Income Tax and VAT payments. Time to Pay arrangements can be made for Corporation Tax and PAYE thus allowing payment to be deferred or agreed at an affordable monthly repayment.

It’s our job to support Company Directors and Individuals be it talking with HMRC on your behalf; just providing some simple self-help guidance on cash flow and money saving; or talking you through how to deal with lenders and creditors.

COVID-19 will no doubt change the way we work for many months, if not years to come. Companies will down-size and restructure, other will close completely, the impact on employees is going to be staggering. High Street retailers that had their own problems pre COVID-19 are really struggling with major brands disappearing, never to return. Other big employers across all sectors including manufacturing, transport, banking and travel are restructuring with significant job loses being announced recently by BA, Rolls Royce, HSBC and BP.  These are large employers; SME’s across the UK will be competing similar restructuring especially when the furlough scheme ends. This is going to impact massively on Individuals who will unfortunately lose what were secure jobs through no fault of their own.

Another major issues for Company Directors is the uncertainty. Although we are seeing restrictions lifted, we just don’t know how this will impact on our businesses. For some, it will be like the first day of trading all over again. Others will pick-up where they left off and for some it’s going to be a rocky road. Despite best efforts to draw-up cash-flow forecast and profit and loss statements as part of the CBILS and BBBL application. Directors are informing us that they mis-calculated and are projecting that these funds will run out sooner that anticipated.

If you are feeling under pressure, stressed, don’t know where to turn we provide free support to Company Directors and Individuals experiencing financial pressure. We are committed to recommending solutions that are best for yourself not the ones that will financially benefit our company.

For a confidential chat phone today on 01257 543013.

Andrew Stewart

Managing Director

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