The support measures announced last year are due to change once again.
The key points are as follows:
- The ability of creditors to issue Winding Up Petitions and Statutory Demands continues to be restricted beyond 30 June and has been extended to 30 September 2021 thereby giving further protection from creditor enforcement action
- The extension of these restrictions was announced in tandem with a package of further commercial tenant protections
- There remains significant funding in the system – from CBILS, BBLS (potentially extended via the Pay As You Grow scheme) and now the new Recovery Loan Scheme – which, combined with the inability for creditors to take enforcement action, still gives business owners time, and therefore breathing space, to do something about their situation.
- Covid loans are now coming due for repayment and the furlough scheme (a godsend to so many businesses) changes from 1 July – with employers being asked to fund an increasing percentage of staff wages over the three months before the scheme is due to end on 30 September.
R3 – the Association of Business Recovery Professionals – has recently launched a new resource to provide directors and business owners with a one-stop guide to the options open to them to deal with their corporate financial difficulties.
The guide, Get Back to Business: A guide to dealing with corporate financial distress, is available for free from R3’s Back to Business website, and aims to make it easier for directors to understand their options and take action to stand the best chance of resolving the financial issues facing their firms. www.backtobusinessuk.com.
This article has been published in full on the Business Desk, courtesy of Rik Heap, director, Leonard Curtis Business Solutions Group. “The two key recommendations from the guide are; act early and take advice – wise words indeed.”