No doubt you’ve spent time recently considering the potential impacts of COVID-19 (coronavirus) on your business. The financial wellbeing of you and your business is a priority for us. We promise to do what Kiwis do best: stand by each other in the face of a challenge.
If you’re faced with any issues, please talk to us. In the meantime, here are some things to think about while working to keep your business resilient during the coming months.
Hope for the best, prepare for the worst
The COVID-19 situation is very fast-moving. It could blow over quickly, or settle in for a long period of reduced business activity. We think the sensible course of action is to hope for the best but prepare for the worst.
For ASB this means ensuring our people’s safety, so they can continue working with you and our other customers. It also means assessing and even testing our business continuity plans.
What does it mean for your business? Our Chief Economist, Nick Tuffley, sees three main areas of impact:
- Export earnings – a reduction in overseas sales or exchange rate impacts
- Supply chain disruption – being unable to continue operations due to a shortage of materials from China and other affected countries, or disrupted transport operators
- Social distancing – government quarantine policies or self-isolation could disrupt your staffing levels and reduce society-wide spending patterns
Manage the potential impact on your business
We believe there are four things to consider when planning your business’ course through this new situation.
- Understand trends in your business – keep an eye on sales, revenue and cash flow, and dig deep into any unexpected drops
- Understand your supply chain – stay in contact so you know about any disruptions early, consider increasing your inventory if you can, and locate alternative suppliers just in case
- Clarify your options – go through the different scenarios your business could face and work out what resources you would need to get through
The fourth thing to do is stay informed. This is a fast-moving situation, but there are many sources of information for you:
The sooner we talk, the better
Your financial wellbeing is our priority.
If your analysis suggests you could be faced with a cash flow problem, please talk to your relationship manager immediately. We can work with you to take practical, effective steps to minimise disruption to your business.
Together, we can try to get you back to business as usual.