Getting ahead with proactive Risk Management
Virtually every business will face financial challenges as a result of the Coronavirus pandemic.
Engaging your creditors
The worst thing a business or individual can do when navigating this difficult time, is to keep quiet and hope it’ll all go away. Just because the majority of individuals and business are faced with the same financial dilemma, doesn’t mean that the effect of non-compliance with credit payments will simply disappear. It won’t. But it can become more manageable if you are proactive and formally engage your creditors, with details of your financial situation as well as suggestions of how to overcome the temporary hurdle.
Weighing up your options
When a business is unable to meet intended payment schedules and experiences severe short term financial liquidity constraints, business rescue is an option which can limit the damage which may be caused by an inability to pay creditors, and provide an opportunity to restore financial liquidity. It is however immensely important to fully understand the business rescue process prior to considering such option, as not all financially constrained businesses will qualify, and it may be that other options are favoured. Each situation would need to be assessed on its own merits. Embracing whichever process may be suitable and acting proactively can ensure the survival of your company.
Bosch Marais and Associates has extensive experience in business restructuring and is extremely competent in assisting clients to manage difficult financial circumstances.
Your business may be facing its biggest challenge as the COVID-19 lockdown sees businesses across the country closing their doors for 21 days. Get in touch with us to make sure that when our country emerges from the lockdown, your business does too.