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The impact of COVID-19 on businesses is unprecedented. Our dedicated Debt Advisory Team have live up-to-date market knowledge and are here to support you.

What the market is saying

  • Lenders remain open for new business whilst primarily focusing on supporting existing clients’ immediate requirements.
  • Announcements from Department of Finance and Central Bank are welcomed and will create consistency in supports offered across the financial sector.
  • Forbearance measures e.g.   3 month payment moratoriums for retail / personal and corporate clients expected to be widespread and standard.
  • Efforts to speed up emergency credit approval applications underway e.g. proposed auto approvals subject to cap.
  • State backed platforms in particular are seen to have an important role in provision of emergency funding, however the current focus of supports appears to be at the SME level e.g. SBCI’s Covid-19 supports.
  • Discussions are ongoing at a National and European level on classification of loans impacted by Covid-19 versus typical “Non Performing Loan” classification.
  • Goodwill across the funding market to work with the Minister for Finance and Central Bank on appropriate capital solutions and supports rather than looking to insolvency measures at this time.

What you should do

  • Engage with your lender early – “check in” calls and status discussions.
  • Reforecast budgets and prepare scenario analysis - funders will be keen to see your view on likely trading.
  • Consider moving to daily cash flows and rolling 12 week forecasts for the short term to accurately  manage cash flow.
  • Consider cost cutting measures, alternative sources of funding and efficient working capital funding e.g. invoice finance and supply chain finance.
  • Review existing Facility Agreements for terms and covenants to avoid potential unintended breaches and or agree early forbearance measures.
  • Consider Government Supports e.g. SBCI loans, VAT and PAYE delayed payments etc.
  • Regardless of available cash reserves businesses should engage with their bank to understand their available credit options for use alongside cash reserves.
  • Consider any committed but undrawn facilities as additional cash flow headroom.
  • Don’t forget the “big picture” when looking at short and medium term funding options - look beyond the immediate and consider what the medium term landscape may look like.


If you have any related questions or need further information about KPMG’s response to COVID-19, please get in touch with our Debt Advisory team for assistance.

Further information