Focusing on the needs of today, at the expense of tomorrow is a bad approach for a business’s long term survival.
As the impacts of COVID-19 economic upheaval continue to be felt, businesses are anticipating the potential impacts on revenues, funding and liquidity – and are putting crisis scenarios and plans in place. Many organisations continue to actively consider how these scenarios will flow on to projections, budgets and financial information prepared for their various stakeholders, and how to communicate these plans to their stakeholder groups – particularly lenders.
Current funders may be expressing concern about providing additional liquidity, resisting to renew commitments or seeking to re-negotiate key terms and conditions, including pricing. Understanding the alternative funding options that are available during times of volatility and how to access these is a prudent part of capital management.
So what are the liquidity and funding factors that need to be considered in a time of uncertainty – and what is the next phase in the revised business model?