The Coronavirus Job Retention Scheme (CJRS) closed on 30th September. This was an initiative set-up by the Government which allowed a business to claim up to 60% of a furloughed employees wage, with a cap of £1,875 per month, per employee. A business then had to pay at least 20% of their wages so the employee would receive at least 80% of their usual salary (again capped but this time up to £2,500 per month).
The CJRS was a fantastic resource for any business that was struggling due to the impact of the COVID pandemic. Being able to keep staff salaries paid whilst not panicking due to lack of sales and new revenue not being generated was incredibly important. However, as more and more businesses are now getting back to normal operations the Government has decided that now is the time to stop this scheme.
The impact this has on a business is very simple, they must now be cash resilient for themselves. They now revert to having to juggle the demands of waiting for payment from customers whilst ensuring they meet their monthly payroll demands and stay on top of supplier payments. Balancing cash flow will be the most crucial factor in ensuring the continued success and ongoing growth of any business.
With the closure of CJRS, the NGI team have been working hard to support businesses through the boosting of cashflow. We have been working on various business finance deals to account for the increase in salary payments and for providing a cash provision to suit onboarding needs.
On top of this many businesses are exploring some ambitious growth plans, resulting in several new job vacancies which will demand an even larger cashflow balance. This again something which our team are experienced in.
If you are looking for some advice or guidance following the expiration of the CJRS then we would be delighted to help. Please call us on 01993 706403 or e-mail firstname.lastname@example.org.