News article

Coronavirus: Advice if you're experiencing cashflow pressures

10 June 2020


Support and advice for businesses that are experiencing cashflow problems as a result of COVID-19

The COVID-19 pandemic has affected business activity and created uncertainty for many businesses.

Business activities have been disrupted for some time, and as a result, many businesses have experienced cashflow issues.

Practical actions

Here are practical actions which you can take:

  • Work out the extent of the pressure – based on the estimated impact of lost sales and other disruption, how much additional borrowing are you likely to need?  See manage your cashflow.
  • Create a business plan that shows how the business will trade its way back to a healthy position. See tailor your business plan to secure funding. Consider any actions you could take with respect to staff such as flexible working, reduced opening hours or short-time working
  • Once you have an idea of how much additional money you will need, call your existing finance provider – a bank or another lender. The sooner you approach them the better. If you have an existing loan or asset purchase (for example a lease or HP agreement), you could ask for a repayment holiday. You may also need a new or increased overdraft facility. The better your business plan, the more likely you are to be successful. See borrowing finance for your business.
  • Talk to your customers, especially large customers, and ask if they can pay your invoices more quickly. See ensure customers pay you on time.

Support for businesses

A range of support schemes have been made available for businesses - see coronavirus business support for further details on each scheme.

Support from lenders
Many lenders are now offering support to assist with cashflow. If you do not meet your existing lender’s criteria, shop around. If you cannot find a suitable lender, there are three online finance platforms designated by Government that can help you find suitable providers.

HMRC’s coronavirus helpline
Call HMRC’s dedicated helpline on 0800 024 1222 to find out if you are eligible to defer making PAYE and VAT payments.


First published 20 March 2020