Preparing to engage lenders during the coronavirus crisis

The Government has reacted to the coronavirus crisis with an unprecedented series of support and stimulus measures, giving you a number of initiatives to actively assess and pursue.

But many businesses will still need to turn to their existing lenders for support, and many more will need to explore alternative sources of funding with new lenders.

Here’s our three stage checklist for preparing to approach an existing or new lender for support.

    Business review, monitoring and response
  • Continue to critically appraise your business risks.
  • Identify ways of lessening exposure and impact wherever possible.
  • Explore supportive relationships with landlords, suppliers and customers.
  • Monitor KPIs such as daily sales and cash collection.
  • Carefully consider potential downside forecasting on a weekly or monthly basis, with a focus on cash.

Read our guide to scenario planning and stress testing.

    Explore the Government initiatives

Find out more on our relief and support for businesses page.

    Identify your funding requirement
  • Revisit your forecasts in light of the pandemic.
  • Consider the impact of any damage limitation strategies implemented.
  • Identify the funding shortfall and stress-test this for sensitivities.
  • Develop the ‘ask’ by considering alternative ways of meeting the funding shortfall.
  • Present the fully funded downside case in the optimal way.

What to do next

Once you’ve gone through this preparation, plan A should be to engage with your existing lender. In most cases, they will be best placed to provide you with support and the most cost-effective solutions.

  • Read our guide to engaging with existing lenders during coronavirus.
    But it makes sense to have a plan B prepared and ready, in case your existing lender can’t provide you with the support you need. This plan should include a list of potential alternative lenders, and which ones will be most receptive to your proposal.
  • Read our guide to approaching new lenders during the coronavirus crisis .

For expert advice that’s tailored to your business, please contact 

Gregory Moreton Greg Moreton

Partner, Head of Debt Advisory