Over the past couple of days we have contacted several accountants to discuss the suspected impact of COVID19 on their clients. Some were understandably flat out lodging claims for furlough payments, but many were of the view that companies generally are in 3 camps:
1. Cash rich or 'business as usual' so there would be no material impact;
2. Good businesses that were '50-50' as to whether they would be able to get back on track following lock down, despite the available government backed loans and grants; or
3. Businesses that were already trading 'on the edge' before COVID19, but are waiting to see what happens.
Many insolvency firms, like us, are gearing up to help struggling businesses in the near future. It is however important to note that if you have any clients who sit in camp 3 (above), the further demise of their business is sadly fait accompli! These are the businesses who should be encouraged to speak to an insolvency practitioner now to clearly understand what steps should be taken to mitigate further determent to it's creditors. If you believe your clients would benefit from some free, no obligation advice, please contact us.