Hotels: Is there anything else that you can do which might help your cash flow?
Do you have any corporate accounts? Are these corporate accounts in arrears? If so, we would suggest that where possible you look to recover those arrears now to avoid any issues if those debtors themselves have financial difficulties.
Are you eligible for any other support?
- Hotels are receiving a business rates holiday for the 2020/2021 tax year. Please see “Check if your retail, hospitality or leisure business is eligible for business rates relief” for more details.
- If your hotel is in receipt of small business rate relief, there is grant funding of £10,000 available. Alternatively, there is grant funding of £25,000 available for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000. Please see the government guidance for more details.
- Could you make use of the Coronavirus Bounce Back Loan or Coronavirus Business Interruption Loan Scheme? These offers loans of up to £50,000 and £5 million (respectively) for SMEs. Please see “Apply for a Coronavirus Bounce Back Loan”, “Apply for the Coronavirus Business Interruption Loan Scheme” and “Government announces 100% guarantee of loans up to £50,000 under the Coronavirus Business Interruption Loan Scheme” for more details. If you are unable to access this Scheme, support might still be available through the Coronavirus Future Fund. Please see “Apply for the Coronavirus Future Fund” for more details.
- If you are a large business could you make use of the Coronavirus Large Business Interruption Loan Scheme? Please see “Apply for the Coronavirus Large Business Interruption Loan Scheme” for more details. Could you also make use of the Corporate Financing Facility from the Bank of England? The Bank of England will buy short-term debt, which will enable you to finance your short-term liabilities (thereby bridging Coronavirus disruption to your cash flows). Please see “Apply for the COVID-19 Corporate Financing Facility” for more details.
- Provisions have been introduced to permit the filing of taxes later than usual. Could this be utilised to help with cash flow? Please see “Deferral of VAT payments due to coronavirus (COVID-19)” for more details.
To read more tips for hotel owners and managers click here.