Facing a Covid-19 cash-flow crisis?

Find out how Hotel and Leisure businesses can keep on top of their cash-flow in the face of Coronavirus.

All across the country, pubs, bars, restaurants and other leisure businesses are having to shut up shop, or drastically curtail their operations. One of the biggest challenges this throws up is cash flow. Although the government is stepping in to give help with wages, there are many other costs that just can’t be wished away. Here are five tips on how to keep your head above the water:


1. Find new ways to generate income.

Cash is king, so look for all opportunities to generate income, keep assets intact and staff employed. Recent government announcements have made it clear that any business with a commercial kitchen can set themselves up as a takeway.

The Chief Planner has urged Local Authorities to not undertake planning enforcement action which would result in the restriction of public houses and restaurants providing takeaway services on a temporary basis.

If you take this route, use social media to let everyone know and, use Deliveroo or similar services to send food to customers or, if necessary, reassign staff – for example, move your managers onto delivery duty. Remember to abide by all relevant H&S legislation, social distancing and lockdown protocols.


2. Take advantage of all available grants, loans and other financial help.

Retail, hospitality and leisure businesses with a rateable value between £18,000 and up to and including £51,000 will be able to apply for a one-off grant of £25,000. A one-off grant of £10,000 will also be available to small businesses who get Small Business Bonus Scheme relief or Rural Relief. Get in touch with G+S for advice on whether you qualify for these grants (see our briefing sheet here) and for the latest details on how to apply.

The Coronavirus Business Interruption Loan Scheme (CBILS) is a loan scheme for SMEs, guaranteed by the British Business Bank and delivered via your bank. It is available to businesses with up to £45m turnover, with loans up to £5m which will be fee free and have 12 months’ interest free. For full details see www.british-business-bank.co.uk

In addition businesses in the retail, hospitality and leisure sectors will be eligible for a Business Rates holiday – for more details of this contact us. Our Ratings Experts will be able to give you an up-to-date picture.

G+S is keeping a watching brief on all developments – we’ll be happy to keep you up to date.


3. Get government help with wages.

The Coronavirus Job Retention Scheme is designed to prevent workers losing their jobs as result of the spread of the Coronavirus. Under the scheme 80% of employees’ wages will be paid (up to a maximum of £2,500 per month). The Chancellor has stated that any employer in the country will be eligible for the scheme. If you are an employer then you will be able to apply on behalf of your employees. Employers who want to take advantage of the scheme will have to designate affected employees as ‘furloughed workers,’ and notify them of this change. Furloughed workers are workers who have been asked to stop working (due to the Coronavirus), but have not been made redundant. Applications for the scheme will be through a new on-line portal.

G+S is keeping a watching brief on developments – we’ll be happy to keep you up to date and let you know how to apply when these details become clear.


4. Use our contacts to find new funding.

At G+S the job of our agents is to buy and sell property and assets. We therefore have strong working relationships with a wide range of brokers who have particular expertise and experience in the hospitality and leisure sector. They understand all of the complex issues involved in running a business in this sector, including the vital role that debt plays.

Get in touch and we can provide you with expert advice how such brokers can help and also act as a conduit to reach out and find who might be best placed to assist you.


5. Raise funding from your assets.

One novel way of raising finance to help with cash flow challenges is to use asset financing. This is where you approach a bank or other lender to get a loan that is secured against your existing secured assets. An asset can be almost anything. In the hotel and leisure sector it is often equipment such as ovens or refrigerators.

At G+S we can help you with advice on asset finance and other novel forms of raising cash.

Whatever your questions or concerns, get in touch with our Hotel and Leisure specialist Pete Seymour – Peter.Seymour@g-s.co.uk