

Posted by Todd Davison on
Purbeck’s tips for stress testing business finances
Todd Davison, MD of Purbeck says: “It is vital that in the midst of so much uncertainty, small businesses have a firm grasp of both their current and future cash position. Use an accountant to help you if necessary. Only by stress testing your finances can you understand the measures you need to take to build your financial resilience.”
Purbeck’s tips for stress testing business finances
Todd Davison concludes: “We know many of our customers have already contacted landlords and current loan providers to arrange a payment holiday to help ease pressure on cashflow. The Government’s support has been crucial but this does have a shelf-life and must be used to sustain businesses rather than help them grow. If you do decide to take out a loan with a personal guarantee attached, make sure this risk is mitigated as far as possible through Personal Guarantee insurance.
“Keep talking to suppliers and customers who are likely to be in the same position. Constructive, transparent dialogue within the supply chain can help manage expectations and identify a collective way forward.”
[i] https://www.thetimes.co.uk/article/lack-of-cash-fuels-fear-for-companies-p3ngz82p5
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