Refinancing During COVID-19

Can refinancing help your cash flow?

It has always been difficult for business owners to predict when issues will arise in their operations. What’s more, they are usually on the lookout for internal issues that crop up within their own business.

However, in the last few months, all businesses have been hit by a global issue that has occurred outside of their business through no fault of their own. Not only that, but the impact itself has been absolutely huge across the board. 

The important thing now is how businesses face this issue and deal with the challenges it raises.

So what should I do?

Having worked through 3 recessions, a global meltdown and now COVID-19, the advice is act now, not later.

It is essential that businesses plan for their immediate and long-term futures through detailed and thought-out business plans and cash flow strategies.

You need to look at your assets and decide what is essential to your business and what is surplus to requirements.

Click here to find out more about Asset Finance.

So how do I do that?

  1. Review your past business  
  2. What assets do I need and what don’t I need
  3. What can I change in my costs
  4. What can I change in my income 

So, what does this all mean?

  1. Obtain up-to-date management information on what your business has been doing and complete the accounts for the year early. Where did custom  come from in terms of sales channels and market demographics? What services or products were in demand? Was demand seasonal or dependent on external factors? 
  2. Review your previous plans for buying. Do you need that new car this year? Do you need some new equipment to deal with the changes? Are you going to need more supplies or inventory? 
  3. What costs can you change? Review your outgoings and find the reasonable savings that can be made.
  4. Can I change my income. Can you raise your prices? What can you offer to make your returning customers convert or purchase more often? What products or services can you upsell to them?

Your accountants and/or business advisors will be able to help in providing management and accounting figures. It is important that you use accountants and advisors who have experience in your industry.

You need to look seriously at what you intended to buy. Do you need it now, is it essential to your business operations? How were you going to finance this or were you buying this cash? How does your plan to purchase affect your cash flow projections? What do you need going forward to deal with social distancing etc.

Review all your costs. You will not be able to change a lot of them. But most businesses will be able to make some savings in some areas – and these can add really up! 

Cash is King

An incredibly old phrase but one that is true in times of trouble – if you have cash you can usually weather a downturn.

The cost of finance

Finance costs feature in most businesses, either to assist with acquisition or to assist with growth projects, existing equipment purchases and future purchases.

This is one cost that most people do not look at once they have taken the finance. However, circumstances change so these should be reviewed regularly.

Are you paying too much for your goodwill loan?

What rate and payment are you making on asset finance?

Could you restructure your borrowing to make it more cost-effective?

Review your own home mortgage as well, make sure you are getting the best rate!

Questions we are asked to help with

  1. I have short term debt that I took to cover a cash flow issue last year which is expensive, can I refinance? Yes
  2. My business acquisition/start-up loan has a high interest rate, can I refinance the goodwill now? Yes
  3. Can I buy my premises? Yes
  4. Is my asset finance rate competitive? Can I change? Yes
  5. I have lots of asset finance, could I change this to a goodwill loan at a lower rate? Yes

These (and a lot more) are asked during normal times. Looking forward, you may need to finance new equipment, cover a period of reduced income or make changes to your practice.

We are happy to have a discussion with you about your needs and whether any changes can be made that will reduce costs.

Action Plan

  • Act Early: Plan for both immediate and long-term business strategies, including cash flow management.
  • Asset Review: Assess your business assets to identify essential needs versus surplus, potentially freeing up resources or identifying refinancing opportunities.
  • Cost Management: Examine and adjust costs where possible, focusing on essential spending to maintain operations efficiently.
  • Income Adjustment: Explore opportunities to adjust pricing or enhance offerings to boost income, considering customer conversion and upselling strategies.
  • Financial Review: Regularly review finance costs and explore refinancing options to ensure they remain cost-effective, including loans, asset finance, and mortgages.

Click here to read our blog on How to finance a healthcare business.

Surviving a Financial Crisis

Our healthcare business consultants are experts at helping medical health providers and their businesses survive a financial crisis. We can help with cash flow management, raising finance and optimising your accounts and tax structure.

Book a free, no-obligation consultation with one of our team to find out more about how we can help you and your business.

For more information financial crises and your business, including more articles, videos and webinars check out our Learning Centre here.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Managing Cash Flow to Keep Your Dental Practice Going

The storm isn’t coming – it’s here.

Businesses across the world are facing cash flow problems, and there are some tough decisions ahead!

In this webinar, Arun and Nigel discuss your options for managing cash flow in a dental practice.

Further Information on Accounts & Tax

Our team of specialist accountants and tax experts can help manage, process and structure your business’s finances. From management accounts and payroll & pensions to tax planning and cash flow management, we can take care of the full back-office function of your business.

Book a free, no-obligation consultation with one of the team to find out how we can make your accounts & tax easier, quicker and cheaper.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Financial Tactics During COVID-19

With the Coronavirus pandemic causing lock downs across the world, businesses in almost all industries are struggling to stay afloat. It is more important than ever that businesses are pro-actively working to save money and protect themselves financially.

With many businesses unable to to open their doors and trade, it can feel like there is very little to be done except wait for lock downs to lift.

Now is not the time to to wait, now is the time for action.

In this webinar, we’re taking a look at some of the financial tactics and strategies that businesses need to be considering at the moment to survive lock down.

More Financial Tactics During COVID-19

11 Top Tips to Manage Your Cash Flow During COVID-19

It is essential that you properly plan and manage your cash flow to be able to pay your bills and grow your business. Use these tips to help manage and mitigate any cash flow issues you may be experiencing.

Read the blog.

Financial Templates

We have tried to make raising finance for your business as easy as possible for you. With that in mind, please feel free to download these templates for vital financial documents that you will need to raise and manage finance in your business.

Download the templates.

Surviving a Financial Crisis

Our healthcare business consultants are experts at helping medical health providers and their businesses survive a financial crisis. We can help with cash flow management, raising finance and optimising your accounts and tax structure.

Book a free, no-obligation consultation with one of our team to find out more about how we can help you and your business.

For more information financial crises and your business, including more articles, videos and webinars check out our Learning Centre here.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

How to Deal With Your Bank in a Cash Flow Crisis

In this webinar, Nigel and I discuss how to handle your banks in a cash flow crisis and what you need to be thinking about.

Click here to read our article on How to finance a healthcare business.

Surviving a Financial Crisis

Our healthcare business consultants are experts at helping medical health providers and their businesses survive a financial crisis. We can help with cash flow management, raising finance and optimising your accounts and tax structure.

Book a free, no-obligation consultation with one of our team to find out more about how we can help you and your business.

For more information financial crises and your business, including more articles, videos and webinars check out our Learning Centre here.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Bank and Asset Finance Provider List

We have now managed to contact most of the lenders to the Dental market and detail each of their policies regarding payment holidays and loans in the attached spreadsheet. It’s quite self explanatory.

Thank you to Dan in my team who has been calling everyone he knows!

Click here to read our article on how to finance a healthcare business.

Business Loans for Healthcare Businesses

We’ve been helping to fund the future of British healthcare businesses for over 20 years and our team are made up of former bankers with decades of experience in the UK’s healthcare lending sector.

You can find out more about working with Samera and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

For more information on raising finance for your healthcare business, including more articles, videos and webinars check out our Learning Centre here, full of articles and webinars like our How to Guide on Financing a Dental Practice.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Business Tips in an Economic Crisis

In this Facebook live recording Arun discusses his tips to manage your business in this economic crisis. – Approx 23 minutes in duration.

Click here to read our blog on How to finance a healthcare business.

Surviving a Financial Crisis

Our healthcare business consultants are experts at helping medical health providers and their businesses survive a financial crisis. We can help with cash flow management, raising finance and optimising your accounts and tax structure.

Book a free, no-obligation consultation with one of our team to find out more about how we can help you and your business.

For more information financial crises and your business, including more articles, videos and webinars check out our Learning Centre here.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Dealing With Your Landlord

I know many dental practices will be concerned about their rent payments due to their landlords.

Naturally, every landlord will differ, but I do think it is worth asking your landlord for some leniency in payments.

For instance, rather than paying a whole quarter in advance, ask if you can pay monthly just for this uncertain period. They may say yes, they may say no, but no harm in asking.

I attach a template of an email I sent to one of our landlord’s for one of our dental practices today, and it certainly did the trick!

Just change the amounts and names.

Give it a go – you have nothing to lose!

Click here to read our blog on How to finance a healthcare business.

Surviving a Financial Crisis

Our healthcare business consultants are experts at helping medical health providers and their businesses survive a financial crisis. We can help with cash flow management, raising finance and optimising your accounts and tax structure.

Book a free, no-obligation consultation with one of our team to find out more about how we can help you and your business.

For more information financial crises and your business, including more articles, videos and webinars check out our Learning Centre here.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Free Cash Flow Spreadsheet Template

Please find below a very simple cash flow statement tool which I urge you to use to help you manage your cash flow.

There are some made up numbers in there currently. Clear them all out and enter your own figures.

Use this tool as a starting point to plan your cash needs.

How does the tool work

  1. The light pink cells require you to enter your monthly income and expenses each month. If you close for a period of time, you may have ZERO income in those months BUT still have the expenses.
  2. Cell B34 (green colour) details your approximate current bank balance in your business.
  3. Once you have entered these key figures you will then see in row 34, your cash bank balance based on your forecast scenarios at differing time points.
  4. You may also need to take into account tax payments too, the spreadsheet can be adjusted by you for your needs.
  5. The tool will then say in row 34 your funding shortfall, if you have one, and the approximate cash you will need to raise.

Personally, I suggest you plan for the worse case scenario and work out the cash you actually require to keep your business in the black.

If using spreadsheets is not your strong point, let us know, we can help you, but we are dealing with these on a first come first served basis.

What Next?

Once you have worked out a projected cash flow for your business, you will be better able to plan the growth of your practice.

If you need finance for your business then book a call with Nigel or Dan to find out the best options for you.

Book your call with Nigel or Dan here.

Commercial Loans for Healthcare Businesses

We’ve been helping to fund the future of British healthcare businesses for over 20 years and our team are made up of former bankers with decades of experience in the UK’s healthcare lending sector.

You can find out more about working with Samera and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

For more information on raising finance for your healthcare business, including more articles, videos and webinars check out our Learning Centre here, full of articles and webinars like our How to Guide on Financing a Dental Practice.

For all our previous webinars and video updates, subscribe to our YouTube channel and follow us on Facebook and Instagram.