Covid-19 SMME Support

The corona crisis is a critical time where SMMEs need all the guidance they can get to navigate through the storm.

Our focus is to offer bespoke business consultations for SMMEs, to help them comply in order to qualify for funding during this difficult time.

Contents

  • ESSENTIAL SERVICES
    1. CIPC-Bizportal registration
  • GOVERNMENT FUNDS & INITIATIVES
    1. Industrial Development Corporation (IDC)
    2. of Small Business Development (DSBD)
    3. Government Request for Proposal’s
    4. Farmer Relief
    5. Tax Relief
    6. Spaza Shop Support
  • INDEPENDENT FUNDS
    1. SA Future Trust – Oppenheimer Generations
    2. Motsepe Foundation Fund
    3. Johann Rupert Fund
  • OTHER HELP
    1. Bank Repayment Relief

ADVICE FOR RUNNING BUSINESS

As accounting officers we are aware of all financial and other forms of aid provided by national governments and we take it upon ourselves to land a helping hand to all our clients.

  • Application process

We identify clients in high risk sectors and those that would benefit most from public support measures.

We  help our clients by:

  • Advising on, and guiding through, all the claims available to them
  • Identifying options to diversify their business
  • Accessing emergency financing provided by governments
  • If possible, consider re-negotiating your fees and payment schedules with them
  • Immediate business survival

Inform our SMME clients of immediate measures that might make the difference between survival and collapse. And help them implement these, for example, to:

  • Access the reliefs on offer as soon as possible to maximise the impact.
  • Review and adjust their cash flow forecasts to determine what impact cuts in sales will have on their ability to pay their suppliers and debt. Businesses should continue to pay their suppliers when they can to help avoid a wide-spread collapse of the financial system.
  • Consider the business model to ascertain whether the SME can deliver goods or services in an alternative manner – such as by home delivery or online, and whether it can downsize or stop certain activities, such as travel, sales and marketing.
  • Understand their supply chains and plan for the supply of products and services to get disrupted. This may involve scaling back production for some parts and stock and re-considering suppliers and clients from countries heavily impacted by the virus.
  • Check their insurance and whether they are eligible for a claim for any financial losses.
  • Communicate with their staff to discuss the possibility of short term pay cuts.
  • Ensure that their financials are up to date so they can monitor profitability, stock, and debtor-creditor balances. Many governments offer deferment of tax returns and financial information filing. However, such deferments’ long-term impacts are not clear. They could result in a later bottleneck in filing such returns and the possible loss of financial and tax data.
  • Renegotiate their payment terms with suppliers and help them communicate with their bank should they be unable to meet loan commitments.
  • Negotiate with their debtors, for example to offer discounts in exchange for early payment.
  • Continually monitor the situation and inform your clients of new initiatives so that when lifting the restrictions becomes imminent, they are ready to recommence trading.
  • If all else fails, consider the insolvency options as it may be possible to rescue viable businesses by debt reorganisation rather than be forced into full liquidation.
  • SMEs plan for the medium term

Many SMEs are likely to be in a crisis mode. We help SMME to avoid emergency measures that could endanger the business’ medium-term viability.

  • Reconsider whether laying off employees is unavoidable. On top of having negative social and societal impacts, cutting down on workforce also constitutes a loss of key skills for the business. This should be a last resort option only, so make your clients aware of and help them access all alternative options, aid and financing available first. It is possible that staff would prefer taking a temporary pay cut over redundancy. This could increase staff loyalty and allow the business to resume operations once the restrictions are lifted.
  • Start building financial reserves as soon as possible, to prepare for a new peak in coronavirus cases even after the current restrictions are lifted.
  1. Helping our clients benefit from expertise of the whole SME ecosystem

Working hand in hand with the government to support our clients in executing steps for their survival

 

 

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