Webinar report: The war against Covid-19 – the real battles could lie ahead

Businesses are fighting a war against coronavirus – but the real test lies ahead if West Midlands businesses are to survive and thrive after the lockdown is lifted.

That was the message from Julie Palmer, regional managing partner at Begbies Traynor, who was speaking as a panelist at TheBusinessDesk.com’s exclusive webinar ‘Covid-19: Helping Businesses Survive and Thrive’.

The event, which was sponsored by Begbies Traynor was joined online by almost 150 delegates, saw an expert panel from the professional services consultancy offer advice to businesses across the region in what are unprecedented times.

Palmer said: “We are almost in warlike times at the moment, as with any war, it’s a really dangerous period. But I think people sometimes forget that it’s the period when you’re emerging from a war that is actually really dangerous. And I think that’s going to be a real struggle.

“The government support measures are very much focused on managing this crisis right now. I think the big test will be: can we actually manage the economic crisis that’s looming? And to what extent can we continue to offer those measures to businesses as we emerge from this crisis. That’s going to be the real test.”

Our panel outlined the different options available businesses at the moment – from the Coronavirus Business Interruption Loan to furloughing, whether businesses can still chase debts through the courts in the current climate and how best to conserve cash.

Gareth Prince, partner in the Birmingham office at Begbies Traynor said he thought the various Government schemes would be extended as long as it takes.

“The Chancellor did say that he would extend these measures for as long as necessary,” said Prince, adding, “I think you can only take him at his word on that.”

The government does seem to be fully prepared to stand behind these these measures. The furloughing scheme took everyone by surprise, really. I thought when it was first announced that it was a very generous scheme, and it does seem to be making a big difference. So I can see them extending that if the lockdown continues. As for when the lockdown will end – I think we all believe that it will continue through through April and beyond.”

Bob Young, who has spent over 40 years as an insolvency and turnaround practitioner and now works in Begbies Traynor’s Staffordshire office, agreed.

He said: “I think the Chancellor was quite impressive in announcing all these schemes very quickly. The problem, of course, is that there wasn’t time to build up the detail around them. So, there have been particular problems with the business interruption loan scheme.

“I think what is excellent is the tax deferral scheme for PAYE and VAT. That ought to aid with with tax flow with cash flow somewhat and over a longer period, I think that will help.”

Cash was king for Mark Malone, a partner in the Birmingham office of Begbies Traynor.

He said: “The directors that we’re speaking to have the importance of cash flow forecasting in the short term. We talked about a 13 week forecast on a rolling basis. The reason we use 13 weeks is because it should cover most financial figures, so you’ll have weekly, monthly and quarterly.

“Now, as we all know, these are very, very unusual and uncertain times. So it is it is difficult to forecast. However, and again, speaking about the advice that I’ve given to to business owners at the moment, if you are forecasting, we do recommend that maybe if you forecast on on a normal basis at the moment, and then make adjustments for the impact that this virus is having on your business.”