As we start to move away from the emergency phase of the COVID-19 crisis, companies are shifting their focus to the recovery stage, which will ultimately lead to the so called 'new normal'.
From a Working Capital perspective, the lockdown measures prompted firms to protect their cash flow by acting on measures such as:
- delaying payments with suppliers or re-negotiating extended payment terms, when possible
- ensuring client invoices were issued and payments collected accordingly (dash for cash)
- applying for tax deferrals and other financing schemes put in place by governments
- recurring to short term debt to ensure liquidity, at expense of a reduction in long-term financing on investments for growth
Although these actions helped businesses to cross the bridge to the recovery phase, companies will now be faced with the reality of having to honour the deferred payments to suppliers, government and banks whilst also having to finance their day-to-day operations. All this in an environment where revenue might not necessarily be at the same pre-crisis level for some time.
In this context, this webinar aims to shed some light on practical actions that firms can take in regards to working capital management to better navigate through this challenging recovery period.