Rental contract – check for force majeur clauses, ask your landlord to give you complimentary months, or to renegotiate contract. If you are a good tenant, he will be concerned for you too, as good tenants can be hard to find. Remember that landlords are preoccupied as much as tenants.
Reduce staff – those employees who are on probation can be made redundant without specifying a reason.
Opening hours of your business – analyse the flow of business and adjust to open for less hours, that way you reduce various costs such as water and electricity bills.
Stock – Strict stock ordering, make offers on items you cannot sell, put items that are paid but unsold on heavy sale to generate cash – this will give you cash flows. Return items that are slow moving or on consignment or you cannot sell to suppliers, in return for a credit note or a reduction of balance due to the supplier.
Salaries: The biggest cost
– Reduce working time (e.g. three-day/four-day week) and pro-rate the salary accordingly.
– Postpone any commissions by deferring the payments for three to six months’ time.
– Postpone any performance bonuses (whether due for a previous year or upcoming) by deferring payment or staggering it over time by doing stage payments.
– Ask employees to make use of their annual leave. This is not a cash flow measure but in case of redundancy it will reduce the termination cost impact.
Postponement of VAT and provisional tax contributions
A grant of €350 given to employers for every employee on quarantine leave
A wage supplement to those working in five industries mostly hit by the pandemic will remain in place until September. The industries are: Tourism accommodation, travel agents, language schools, event organisers and transport
A scheme by Malta Enterprise will be set to help companies re-structure their business models. €5,000 budget per business will be reserved for consultancy services in this regard
Tax credits received as part of the Malta Enterprise MicroInvest scheme can also be transferred into cash grants