It is hard to believe that we are already into the month of November, and only a month away from the end of 2020. While most will breathe a sigh of relief to have this year come to a close, others will hold their breath to keep their business viable, while maintaining demand, service delivery, meanwhile keeping staff employed, safe and healthy. But how do you plan in a pandemic? How to come out of this pandemic, Better? Stronger? These are questions we are hearing and we are here to tell you there are strategies that can help.
Addressing Some of the Top Pain Points
1. Business Continuity in a Pandemic.
How to manage cashflow and what are some cost reduction strategies?
The recent Throne speech reaffirmed the federal government’s commitment to supporting business, keeping staff in the workplace and a commitment to creating over one million jobs and restoring employment to previous levels.
The federal government has provided a number of subsidies and relief programs that can be accessed by qualifying business:
- Canada Emergency Wage Subsidy (CEWS) recently announced that it will be extended to the summer of 2021;
- Canada Emergency Business Account (CEBA) which has been expanded to not only include operational costs but help business with fixed costs;
- Improvement to the Business Credit Availability Program;
An extensive summary of the Federal Government Response Plan COVID-19 programs for business and individuals can be found on the MNP website at Covid-19 Federal Government Summary for supports and Business
2. Banks Reluctance to Loan Funds
How to access financing and borrow funds to sustain operations and ride out the wave?
At the best of times, securing a loan with a bank is onerous, time-consuming and requires giving up your firstborn. But with the current COVID landscape, the onset of the second wave and the unpredictable revenue stream is making it extremely difficult for businesses to qualify, be approved for the required funds they need and receive it in time to keep the doors open.
Securing financing when business is good and when the financial position is healthy is a critical piece in planning and business continuity.
Did you know that that a life insurance policy can be a means to:
- Secure an Emergency Fund
- Bolster high early liquidity by increase cash surrender value
- Finance business expenses and recapture interest costs
- Access to capital without the traditional process of applying for a bank loan when credit is tight
- Offer a more flexible repayment schedule, versus the rigid loan repayment schedule
See how life insurance can boost your balance sheet and help you have access to funds, if and when you need it. Read More Here.
3. Retirement & Tax Planning Strategies
When is the last time you did an insurance inventory?
In the 2019 Canadian Financial Capability Survey, experts suggested that individuals should be reviewing their estate plan every 3 to 5 years or when there is a major change in your life circumstances. According to a recent Scotia Bank study, 68% of Canadians are currently saving for retirement and 70% are worried that they are not saving enough. When is the last time you did an insurance inventory?
Not only does life insurance improve the balance sheet. Corporately held policies allow business owners and professional corporations to:
- Diversify their asset mix
- Reduce taxed on investment
- Have access to cash flow and,
- Triggers the tax free benefit upon death