Talk with suppliers about payables
The worst thing you can do here is simply ignore payments that are due. That will cause resentment and may result in the commencement of legal proceedings against you. Speak to your suppliers. Have frank discussions of where you are and see if credit can be extended. Of course, if you can pay then do so, what you want at the end of all of this is still to have a supplier available to you.
Draw lines of credit
If you have existing lines of credit but don’t fully utilise them, then do so. You have an agreement so take advantage to ease your cash flow concerns.
Talk to your lender about principle payments
If you can, get capital repayment holidays on your borrowings, both business and personal.
Talk to your customers about the debts they owe you.
It is very easy in a crisis to simply stop paying, but that has consequences. Just as you pro-actively should speak to the people you owe money to, you must also speak to those who owe you money. For them, you need to survive at the end of this crisis, so if they can pay you then they should, even in part. Have the discussion, even if you feel it will be a difficult discussion.
Daily Dashboard of Revenue and Cash
Check the bank daily. Forecast what is due in and what is due out and keep on top of the available cash balance at all times. You need to know what you have and this will help if you need assistance from the bank or other lenders.
Review your financial projections and make changes for the current crisis. Even if you have to change the forecast on a weekly basis, do so, as it will highlight exactly where the “pinch” points may be.
If you don’t have a forecast, ask yourself why you don’t, because you really are playing catch up right now.
Plan now for cash infusion
If having taken the step above you can see a cash crisis ahead, then consider injecting funds from shareholders, lenders or perhaps approach that Business Angel who has been contacting you over the past months.