The world as we knew it changed changed yesterday, Tuesday 23 March 2020, when PM Jacinda Ardern announced that as of 11.59pm Wednesday 25 March 2020 New Zealand will move to COVID-19 Alert Level 4, which means a nationwide lockdown.

All the official details from the Government can be found here
www.covid19.govt.nz

The following text is a transcript from a vlog I published yesterday, asking some practical questions around Managing Cash at COVID-19 – Level 4 / Nationwide Lockdown. A big thanks to Rachel Bashnick from Findex for the conversation that prompted this content.

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READ THE TRANSCRIPT BELOW

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OFFICIAL COVID-19 WEBSITE

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Well kia ora folks.

Today, 23 March 2020, the world as we knew it has suddenly changed.

We've had the announcement we're going from COVID-19 Alert Level 3 through to Level 4 shortly. Look, I don't know all the details and I'm not sure many people do, but I've just got some very practical things for you to think about in relation to working capital and what you can do right now.  

So I've got five main points:

Wage Subsidy

If you haven't been to www.covid19.govt go there right now to make online applications for the Wage Subsidy if this applies to you.

Debt Restructuring

The next one is looking at your debt structuring and what needs to be done here. I advise you to speak to your bank sooner than later. You're wanting to look at things like potentially moving onto interest only, taking some mortgage repayment holidays, extending the term of the loan, or it might just be having conversations around these things.

Expense Reduction

Look at your profit and loss, and have a look at your below-the-line expenses and what costs can you reduce. And maybe you should also speak to your landlord from a rent perspective.

Tax Obligations

Speak to your accountant from a tax perspective. You may have some March 19 tax that's due, so you need to be understanding what your obligations are there and what the options might be for you.  

Working Capital Requirements

And finally, you should be working out what’s your break even figure. What do you need after the Wage Subsidy comes in? Perhaps you need to be looking at debt restructuring, some rent relief, and the figure you need from a working capital perspective and then how to fund that.   

My Final Word For Now

So there are lots of things to think about from a business perspective! I know more information is going to be coming over the next day or two, and over the next four weeks, but reach out to your advisors, speak to your bank, speak to your accountant, speak to your business advisor, speak to other people, and look for some peer support and most importantly stay safe

But most importantly, take care out there (and at home), be nice to yourself and others, and remember we will get through this.

Nga Mini, Hutch