With the crisis going on, many businesses have shifted away from growth to stability.

The focus for these businesses are two-fold:
1- Reduction of outflows
2- Increase of inflows

This post is about inflows.
Cash flow can be strengthen in one of two ways:
1- Increased collection of receivables
2- Securing loans and/or working capital lines of credit.

With respect to a LOC we are actively working with our clients and their banks.

This crisis is affecting everyone INCLUDING the banks, so although the government is trying to do what it can to help Canadians, the banks are not part of the public sector and must ensure that the loans are given to viable entities.

Banks are currently asking the following.
For the next 6 months:

1- How will you be affected by the virus, and what activity level do you anticipate to operate at, (i.e. full shut down or reduced capacity)?

2- What are your key carrying costs and your action plan to mitigate the impact of the crisis?

3- Will a working capital loan and/or postponement of capital payments, cover your cash needs?

4- What are your agreements with key suppliers and customers on payment terms / support for the next six months?

Please address these issues before you seek financing. If you need assistance feel free to reach out to me.