COVID 19 Impact Ideas
Dear Valued Client,
With everything going on with COVID-19 every business is going to be impacted. In some industries, the impact will be temporary and some the impact will be longer term.
We are therefore recommending some actions that should be considered.
- Landlords – Let your landlords share in your pain a little. Let them know your sales are taking a major hit and you expect a serious downturn in the foreseeable future and you need some relief. Many landlords will resist and refuse, but some landlords will recognize that a closed business doesn’t pay rent. It’s worth pursuing.
- Vendors – Contact your vendors to let them know that you have been impacted and will need to change some of the terms of payment.
- Banks – Many of you file quarterly covenant reports to your banks. Even the strongest of you could face a problem in the first quarter and probably the second quarter. Be up front – call them, email them and tell them point blank there may be a problem and you will possibly need a waiver from the covenant compliance.
- SBA – The administration and Congress are talking of zero percent SBA/FEMA loans to distressed businesses. There are not any details yet other than the fact that something is going to pass. We need to stay on top of what is going on and, if it is something that helps us, we jump on it.
- Specifically for Franchisee operators you may want to try to get an abatement, a suspension or a reduction in your royalty payments. This might be more difficult but it should be pursued.
We all recognize that this is a very fluid situation and unfortunately, there are things we don’t know. We do know that everyone will have to make some very difficult decisions and make them quickly.
We are here to offer any assistance.