By Rob Adamson, Restructuring and Insolvency Partner, Armstrong Watson LLP
AS we look towards a return to some normality, there remains an underlying concern that many businesses will face some challenges. Knowing how to navigate these will be the key to survival.
Be mindful of deferred debts
A payment holiday is a postponement – any liabilities that have been postponed will need to be paid at a future point in time. These deferred payments need to be factored into your cashflow forecast to ensure that they are not missed once your business starts trading again.
Consider funding
You may need to consider additional funding to assist you at some point. If so, caution should be exercised when opting to increase your debt obligations.