The Travel Trade Consultancy has advised businesses to make use of credit or overdrafts while they still can to survive the coronavirus crisis.
In a Covid-19 guide released by the consultancy company, TTC says agents and operators should fully utilise liquidity while it is still available – dip into pre-agreed credit agreements or overdrafts in case banks withdraw that borrowing capacity.
It also encourages companies to communicate early if contracts are likely to be breached, inform staff of changes, negotiate flexible terms with suppliers, expect greater scrutiny of accounts and review budgets which were created before the crisis hit.
“The travel industry is in the midst of a corona-crisis. We are working with our clients at scenario planning and cash flow modelling to understand the effect of days, weeks and months of this shutdown,” said Matt Purser, TTC’s director.
“Shoring up short-term cash is essential. If you can, draw down on rainy-day credit facilities, push out supplier terms or even take advantage of any government tax breaks announced in this week’s budget.
“It is worth starting these now – these things take time.”