FINANCE
FUNDING PREPARATIONS FOR BREXIT After entering a second lockdown, many businesses are reviewing how they would cope with future lockdowns and potential shockwaves from Brexit. By John Walsham Businesses have shown their resilience, and in the past months many have pivoted to source new markets and opportunities despite the challenges they have faced, and will face, in the months to come. Many have reviewed their supply chain to see how they can eradicate or at least minimise the effect of Brexit on their business and its cashflow. They have asked themselves these questions: n What will be the effect on cashflow if goods or materials take longer to arrive due to being held up at customs?
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n Will my suppliers in the UK and overseas honour their existing terms of trade or instead seek to reduce credit terms?
n As my suppliers look to bolster their own cash reserves what effect will this have on my business? n What effect will potentially longer delivery times have on my cashflow? n Will my customers take even longer to settle their invoices if goods are received late? It is important that businesses who think Brexit doesn’t affect them still consider the questions above, as your suppliers may heavily rely on goods and services from Europe.
