Thread on cash flow management for entrepreneurs when u restart. Many companies have invoked Force Majeure Clause.This is to save themselves from legal complications arising out of possible delay in payments.The impact shall be much more in May if u like us have 45-60 day cycle.

Analyse ur cash flow for April -June. Make a list of must do payments like Salary, electricity ( if ur state has deferred u r lucky, haryana still has not), other essential payments. Avail all relief/ deferment facilities available in Insurance , Saving Payments, GST Payments etc

Avail of all deferment facilities offered for EMIs and Interest from Banks.Treat these three months of Deferments as additional Working Capital Fund that you have to return in Instalments. In routine banking, it is call ‘WCTL’ Working Capital Term Loan

DO NOT defer high interest loans, anything more than 12%, like Personal/ unsecured loans and Credit Card or any other
• On the other hand, some loans are at very low interest rates, like Home Loans. It’s best to defer EMIs for such loans and use this for future tough times

In you are facing Cash-flow mismatch between Inward and Outward, You can consider delaying payments to your not so priority vendor. However, do talk to them and inform of your situation so that empathise with you.

Don’t pay rent for March/ April. Talk to your Landlord. I'm sure, he has to relent by either waiving off or deferring. Don’t make payments for non-essential category, as you decide for yourself. Save every penny and prepare to Live with the little balance that you have.

When you re-start business, whenever that happens, you’ll first need the essential resources of Manpower & RM. Some RM/ Semi-finished stocks you may already have. Check and make Inventory and future Purchase Plan, as per the requirements you foresee for April and May

The little cash with you today may come handy for any further emergencies, health issues a family member may suffer, or worst times, God forbid, in case the problem extends.

When you re-start, you'll need this money to make some special arrangements for your team- Masks, protection gear, Sanitisers, Soap etc.Some extra Transport arrangements may be required. Some adjustment in work-stations to maintain Social distancing. So better spend very sensibly