5 key actions to minimise the impact of COVID-19 on your business
Businesses are already suffering the negative effects of coronavirus, with the companies that operate on the basis of a global supply chain are particularly vulnerable. The impact of COVID-19 on global economies is reflected in unprecedented declines across the stock exchanges worldwide. This is an unprecedented situation, outside of the comfort zone for most business leaders.
In the face of this global threat, only well-prepared companies will be able to protect of their employees and maintain business continuity. Companies will have to face these new extraordinary circumstances, adapting their business operations and updating their internal policies, in order to maintain business continuity.
We present the main challenges and preventive actions that need to be taken to adequately prepare for the tough times ahead.
Supply chain evaluation and analysis of trade agreements
As soon as practically possible, businesses need to assess the risks in relation to their supply chain – so that commercial relations are not hindered or stopped.
Are you concerned in relation to any liability for damages or breach of existing contracts by your contractors or suppliers? Or are you perhaps looking for opportunities to terminate your existing contracts early?
Then you could benefit from comprehensive legal that will allow you to avoid or limit negative consequences of the current worldwide pandemic.
More information: link
Tax risks (and opportunities!). Possibility to benefit from public aid
The Polish government is drafting a legislative package to implementing its so-called ‘Economic and Social Crisis Shield’ for the security of entrepreneurs and employees in connection with the SARS-CoV-2 pandemic.
Which elements of the Shield could companies benefit from the most? How to pay public-law-related liabilities in a timely manner, not to losing any current revenues at the same time, which would undermine financial liquidity? Companies have already started preparing applications for deferred payment of public and legal liabilities in the de minimis formula.
More information: link
Protection of workers and guidelines for employers
The Polish Coronavirus Act, the guidelines of PIP and ZUS provide businesses with solutions in terms of preventive and employee safety measures. Efficient implementation of robust procedures can minimise the risk of spreading of the pandemic, increasing the work comfort of employees.
Do you know how to implement remote work arrangements, change the employees’ working time systems or formulate crisis-management agreements with the employees? Would you like to take advantage of the public assistance available and receive funding for wages?
More information: link
Relationships with financial creditors and restructuring
The COVID-19’s epidemiological threat will also have a significant impact on the relations between businesses and finance providers. Due to increased risk, finance providers may take measures to secure their interests at an earlier stage, and not only in the event of non-payment of the next instalment of a loan or payment of an interest coupon on bonds.
What risk can entrepreneurs face in a situation where there is a sharp drop in revenue without the possibility to reduce costs at the same time? How should bond issuers prepare for possible consequences stemming from the current market situation? What are the necessary steps to be taken if your business is coming to a halt or experiences issues with receivables?
More information: link
Please feel free to contact us. We would be happy to help you in assessing the situation of your business.
Our team consists of experts specialising in particular industries and all areas of legal and tax advice, as well as restructuring advisors.
