COVID 19 Business Help Guide - Page 9



Government loans
and grants
There are a range of government
grants available but remember,
whatever you borrow from
government may have to be paid back
– can your business afford to add this
particular outlay to all your other
costs?
Credit cards
While we may be hearing about low
interest rates remember this is largely
affecting mortgages and does not
apply to credit cards. Interest rates on
cards are usually high compared to
other funding sources which means
turning to credit cards now could store
up problems for the future. If you do
have to borrow through this period of
uncertainty, avoid spending on a credit
the usual rules of play have been
temporarily changed.
This is good news because it is likely
that there will be some understanding
and measures put in place to help you
manage and repay debt, we really are
all in this together.
Generally speaking, the most urgent
debts to pay would be on mortgages
or unsecured loans on the business
and rent. The most important advice is
contact the people and organisations
you owe money to so that together you
can work out a sensible payment plan
on a debt by debt basis.
TOOLKIT
card – business or personal.
If you do have credit card debt and
Get Organized
your business is going to struggle to
pay off the balance each month, it’s
important to discuss options with your
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credit card company as soon
as possible.
Emergency loans
An emergency business loan is like
any other business loan, except
the application and payment is
designed to be much quicker and
so it looks ideal if you need a quick
cash injection. Nevertheless, loan
companies will want to know that your
business is in good health and able to
repay and it is only the right solution
if you have a realistic action plan in
place to pay it back.
Get organized
Taking the ostrich approach to debt
will not help – so you do need to
get your head out of the sand. If you
are a sole trader you are personally
responsible for business debts which
means assets like your home could be
at risk. If you are a limited company
the company is responsible. However,
before you panic remember that in
order for as many businesses as
possible to recover from this crisis,
9

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