Are you facing a Covid-19 Cashflow crisis? Milsted Langdon provides some guidance.

Posted on19 March 2020

If so you are not alone and you may have more options than you think. Few businesses have sufficient cash reserves to be able to survive an extended period during which their cashflows are disrupted. As business-owners around the world are starting to discover, Covid-19 is beginning to give rise to just such disruption. Read the full article here: Are you facing a Covid 19 cashflow crisis

Other things BLS Members might wish to note:

1. For most SME businesses, the most valuable support is likely to be from the Business Interruption Loan scheme which will offer viable businesses loans of up to £5m, with no interest due for the first six months. The government will provide banks with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give banks confidence in continuing to provide finance to SMEs. We understand from our banking contacts that the banks got no advance notice of these plans, and have therefore needed to move very quickly to devise a loan product and have it approved. In order to access a Business Interruption Loan, applicants will need to contact their banks directly in the first instance but may need help preparing supporting information such as accounts and cash flow forecasts Our understanding is that relationship managers in most of the major banks should be in a position to talk about these, and how they work, today or tomorrow, and that loans should be available from next week, although this may vary from bank to bank.

2. Small business grant funding of £10,000 is available for all business in receipt of small business rate relief (SBRR), or rural rate relief. The government will provide additional funding for local authorities to provide a one-off grant of £10,000 to businesses currently eligible for SBRR or rural rate relief to help meet their ongoing business costs. If your business is eligible for SBRR or rural rate relief, you will be contacted by your local authority. You do not need to apply.

3. Individuals should bear in mind that now might be a good time to arrange income protection insurance. This pays out if the policyholder is unable to work as a result of ill-health.

Burges Salmon has been an enthusiastic supporter of BLS for many years. BLS provides a valuable role in uniting and promoting the whole of the legal sector across Bristol to benefit both its members and the city. It facilitates collaboration across the sector to ensure that we can all make a difference. Whether that is driving important initiatives in, for example, Equality, Diversity and Inclusion and the use of new technologies, liaising with stakeholders and charities in our wider community or providing training to generations of lawyers, the service and support provided by BLS is invaluable. More recently BLS has taken a lead on promoting Bristol’s legal brand, encouraging legal and business services talent to come to the city, which in turn attracts clients and inward investment to our thriving and vibrant commercial community. BLS breaks down barriers and brings those in the profession together for the greater good. We are proud of our long-standing association with BLS.
Roger Bull - Managing Partner, Burges Salmon
Three things to say about my experience of working with Bristol Law Society. Their central team, council members and general hangers-on are just about the nicest, most generous group of people working in the legal sector today. The numerous events, awards, socials and conferences I’ve had the pleasure to attend over the years have been, without exception, top quality and supremely organised. And, thirdly, they consistently exceed and challenge the boundaries of what lawyers might assume a regional Law Society will restrict activities to – from a hugely successful charitable school meals drive to corporate social responsibility and diversity campaigns to being joint architects and coordinators of the region’s unique Bristol+BathLegalTech group, which it has been my privilege to co-chair for the last five years.
Chris Bull - Principal, Edge International
As one of the leading Insurance brokers for law firms in the UK and with a large presence in Bristol it seemed only natural for us to support the Bristol Law Society. Bristol Law Society is one of the oldest and most vibrant of the Law Societies in England and Wales. We are pleased to be working with them on important matters relating to law firms’ liability insurances and Risk Management. From Sole Practitioner to Top 20 law firms we are sure our two organisations can provide excellent support and assistance for the challenges faced by the legal profession.
Matthew Baker - Financial Lines Group, Howden Insurance Brokers Ltd
Joining BLS in 2013 and becoming President in 2018/19 has created many longstanding friendships and business relationships, whilst also unlocking doors to other opportunities in the City. BLS enabled a perfect balance of professional development and also opportunities to give back to the legal and wider community. I am pleased that my Firm has supported BLS in many capacities since 2013 and continues to do so.
Nicholas Lee- Managing Director of Paragon Costs Solutions and Past President of BLS