Focus on cash flow and liquidity for COVID-19 resilience

Article provided by: Grant Thornton | View original article

With recession looming, 4 ways to act now

The COVID-19 pandemic is roiling financial markets, threatening businesses and challenging management teams. In these uncertain times and with a possible recession looming, the cash and liquidity needs of a business are paramount. Focus on these four areas now to position your business for what’s coming next.

1. Cash is king

Understand your cash and working capital needs. Cash is the lifeblood of any business. In a volatile and slowing economy, getting an immediate handle on your daily cash needs is essential. Take a critical view of operations, review existing cash flow forecasting processes and understand how potential disruptions to operations may affect liquidity.

  • Run scenario analyses on your financial and cash forecast and understand how that interacts with short-term liquidity needs. This exercise may also highlight any borrowing base or covenant beaches that you could be facing and can help shape any short-term management decisions.
  • Look for opportunities to build a war chest of cash and investigate whether drawing down on credit facilities could be prudent for safeguarding your business.
  • Strategically manage working capital, potentially selling inventory or minimizing new inventory purchases to generate cash. Take a critical look at working capital KPIs such as days payable outstanding and days sales outstanding and understand impact of stretching these days in either direction. Assess capital expenditure requirements and defer non-essential spending if possible.

2. Cost optimization

Be relentless on cost control. Maintaining your current or historical levels of profitability in an environment where supply and demand fundamentals are decreasing simultaneously can be difficult without closely analyzing spending.

  • Develop a strategy: do not execute cost-cutting initiatives at the risk of compromising revenue generating capabilities or diminishing value.
  • Review fixed and variable costs carefully and determine what costs you actually need to run the business.
  • Develop and monitor cost reduction initiatives, such as rationalizing SG&A, taking a close look at headcount and instituting policies that encourage and reward cost savings and conservation.

3. Evaluate customers and suppliers

In times of economic uncertainty, businesses could see increased pressure on the purchasing power and credit-worthiness of customers while also facing tighter credit terms and product availability from suppliers.

  • Do not assume your customers are financially healthy. Re-evaluate credit terms with current customers, negotiate the shortest reasonable terms, and carefully review the credit-worthiness of each new customer before extending credit.
  • Continuously monitor accounts. Failing to collect receivables timely (or even on an accelerated basis) may result in a cash flow shortfall that could have an immediate impact on all areas of your business.
  • Negotiate for the most favorable credit terms with suppliers and critically evaluate your supplier base to determine if your current agreement is still the most favorable for your business.

4. Communicate early and often with your lenders

Your existing lenders will likely know you and your business best. Communicate with them early and often, explaining any situations that may arise and the actions you propose to address them. Transparency and open communication will serve you both well. Your existing lender could be your fastest source of additional liquidity.

  • Evaluate potential covenant breaches based on the outcome of various scenario analyses impacting your financial forecast.
  • Conduct detailed modeling of your working capital facilities, particularly with asset-based loans, which can change their availability formulas due to updated net orderly liquidation values via new appraisals.
  • Stay current on your debt if possible and assess capital structure concerns, including whether you should consider refinancing or recapitalization alternatives.
  • Engaging in key stakeholder and lender discussions early can provide you the time and liquidity to address your immediate potential financial challenges.

The COVID-19 pandemic presents novel challenges and a chaotic business environment. By focusing now on cash flow and liquidity, you can provide your business with the financial cushion and flexibility to weather the storm.

For more – economic analysis, business implications, and new thinking on how to respond, restore, and plan – please visit Grant Thornton’s COVID-19 resource center.

Ryan Maupin
Strategic Solutions
T +1 212 542 9988

Bill Fasel
Managing Director
Strategic Solutions
T +1 312 602 8834

Paul Melville
Strategic Solutions
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Choose DuPage se compromete a ayudar y conectar a las empresas en el condado de DuPage con los recursos que necesitan durante este tiempo. A continuación se muestra una lista de los recursos empresariales y de la industria relacionados con COVID-19.

Para obtener más información, preguntas o si su empresa necesita asistencia y no está seguro de dónde acudir, comuníquese con Greg Bedalov en o con Lisa Miceli en

También puede unirse a nosotros en las redes sociales, donde estamos compartiendo información sobre lo que las empresas y los residentes en el condado de DuPage están haciendo para ayudar, y demostrar el #DuPageDifference.

Las empresas que pueden proporcionar respiradores, ventiladores y equipos de protección personal u otros dispositivos médicos deben comunicarse con el Condado de DuPage en o hacer clic aquí para obtener más información.

Choose DuPage 

Los miembros de la Junta de Choose DuPage han ofrecido su experiencia para ayudar a las empresas del condado de DuPage en las próximas semanas. Si desea conectarse con un experto en los siguientes campos, comuníquese con Lisa Miceli,

  • Bancario
  • Educación
  • Seguro
  • Legal
  • Márketing

Vea nuestro mensaje a la comunidad del Presidente y CEO de Choose DuPage, Greg Bedalov.

Departamento de Salud del Condado de DuPage

El Departamento de Salud del Condado de DuPage ha reunido información para empresas en COVID-19, incluyendo orientación, pautas para instalaciones de alimentos, muestreo de agua, orientación de los CDC, educación, divulgación y más. Haga clic aquí para más detalles.

Estado de Illinois

  • Información y recursos del estado de Illinois COVID-19: Haga clic aquí
  • Línea directa DE Illinois COVID-19 (800) 889-3931
  • Lista de negocios esenciales: Haga clic aquí
  • Departamento de Recursos del Contribuyente de Ingresos de Illinois (Empresarios): Haga clic aquí
  • Información del Departamento de Seguridad del Empleo de Illinois (IDES, por sus seres) para empleadores: Haga clic aquí
  • Información sobre el cuidado infantil de emergencia de Illinois para trabajadores esenciales: Haga clic aquí
  • El anuncio del Tesorero del Estado de hacer que los préstamos puente a bajo interés estén disponibles para las empresas tan pronto como esta semana (3/23/20), haga clic aquí. Para futuras actualizaciones, haga clic aquí.
  • Programa de Becas de Emergencia de Hospitalidad: Haga clic aquí
  • Fondo de Préstamos de Emergencia para Pequeñas Empresas de Illinois: DCEO y el Departamento de Regulación Financiera y Profesional de Illinois (IDFPR) están estableciendo el Fondo de Préstamos de Emergencia para Pequeñas Empresas de Illinois para ofrecer a las pequeñas empresas ubicadas fuera de la Ciudad de Chicago menos de 50 trabajadores y menos de 3 millones de dólares en ingresos en 2019, préstamos a bajo interés de hasta $50,000. Haga clic aquí para obtener más información.

U.S. Small Business Administration (SBA)

Para obtener orientación para pequeñas empresas y recursos de préstamos, haga clic aquí.

Préstamo por Desastre de Lesiones Económicas de Illinois

La Administración de Pequeñas Empresas de los Estados Unidos está ofreciendo a las empresas de Illinois préstamos federales por desastre de bajo interés para capital de trabajo a pequeñas empresas que sufren lesiones económicas sustanciales como resultado del Coronavirus (COVID-19). Para obtener más información, visite su sitio web o revise los siguientes recursos.

  • Comience su solicitud de préstamo por desastre ahora: Haga clic aquí
  • Asistencia para préstamos por desastre: Haga clic aquí o haga clic aquí
  • Manténgase al día: Haga clic aquí
  • Para preguntas frecuentes: Haga clic aquí
  • Regístrese para seminarios web sobre los Préstamos para Desastres por Lesiones Económicas haciendo clic aquí. Las capacitaciones cubrirán la elegibilidad del programa, el uso de ingresos, términos, requisitos de presentación y recursos adicionales para pequeñas empresas. 

Información de contacto para el U.S. Small Business Administration

El personal local está a su disposición y está listo para ayudar. Para comunicarse con el Distrito o la Sucursal, comuníquese con:

Internal Revenue Service (IRS)

El IRS ha establecido una sección especial enfocada en pasos para ayudar a los contribuyentes, empresas y otras personas afectadas por el coronavirus. Esta página se actualizará a medida que haya nueva información disponible, haga clic aquí para ver.

Fecha Límite de Impuestos Cambiada

Los plazos para presentar y pagar impuestos federales sobre la renta se extienden hasta el 15 de julio de 2020.

workNet DuPage Career Center

El workNet DuPage Career Center tiene fondos disponibles para cubrir el costo de reentrenamiento de su personal para que sus trabajos puedan ser reutilizados y los desbaños puedan ser evitados.Para obtener información sobre estas subvenciones, póngase en contacto con Ron Schlager (630) 955-2037,

Si tiene que despedir al personal, hay recursos disponibles de forma gratuita para esas personas (incluyendo hasta $10,000/persona de asistencia de financiamiento para la capacitación laboral necesaria). Los trabajadores afectados deben visita acceder a los servicios.


Pace ofrece viajes gratuitos en todos los servicios de autobús de ruta fija y On Demand de Pace a todo el personal médico( incluidos médicos, enfermeras, EMT y paramédicos) durante la duración de la orden de “quedarse en casa” del estado. Para viajar gratis, el personal médico debe presentar una identificación de trabajo que muestre que está empleado en un hospital, consultorio médico, centro médico o departamento de bomberos local. 

Para obtener la información más reciente sobre la respuesta de Pace a la pandemia COVID-19: Haga clic aquí


Recursos de la Industria

Atención Sanitaria


Venta al por Menor


  • Hospitality Emergency Grant Program: Para ayudar a las empresas de hostelería a llegar a fin de mes en medio de la pandemia COVID-19, el Departamento de Comercio y Oportunidad Económica de Illinois está lanzando el Programa de Subvenciones de Emergencia de Hospitalidad con $14 millones provenientes de fondos originalmente presupuestados para el trabajo formación, promoción del turismo y otros fines. Los fondos de subvenciones están disponibles para apoyar el capital de trabajo como la nómina y el alquiler, así como la capacitación laboral, el reciclaje y la tecnología para apoyar los cambios en las operaciones, como el aumento de la recogida y la entrega. Los bares y restaurantes que generaron entre $500 mil y $1 millones en ingresos en 2019 son elegibles para hasta $25,000, y los bares y restaurantes que generaron menos de $500 mil en ingresos en 2019 son elegibles para hasta $10,000. Los hoteles que generaron menos de $8 millones en ingresos en 2019 son elegibles para hasta $50,000.

Recursos Adicionales para Pequeñas Empresas

Otros Recursos Importantes

Esta página se actualizará a lo largo de las próximas semanas. Vuelva a consultar para obtener más información sobre los recursos empresariales de DuPage relacionados con COVID-19.

COVID-19: Considerations for Employers

Written By: Emily Shupe, Rathje Woodward LLC

COVID-19 (novel coronavirus) was just recently declared to be a pandemic by the World Health Organization. Employers may encounter a variety of employment-related legal issues in planning for or responding to these circumstances. The potential issues employers face include promoting healthy and safe habits in the workplace, high rates of employee absenteeism, a need to conduct off-site business, and general business disruption.

Some of the guidance available to assist employers in their response to COVID-19 includes the following resources from the U.S. Department of Labor:

Here is a brief summary of some issues employers should consider in their planning and response efforts:

Mandatory Infectious Disease Reporting

Under Illinois law, certain individuals are mandatory reporters of infectious disease. Employees of schools, universities and child care facilities, health care providers, veterinarians, dentists, food service management personnel, and correctional facility personnel are just a few examples of those who must immediately report certain infectious diseases, including coronavirus, to the Illinois Department of Public Health. Employers that fall within the scope of the law should ensure that employees are aware of their obligations. Click here for more information.

FMLA & Other Leave Policies

Employees may be eligible for FMLA or other leave benefits for their own illness or to care for sick family members. Employers must decide whether to permit extended leaves under existing or special leave policies beyond FMLA or state law requirements, and how to treat absent employees not eligible for FMLA or state leave. Employers may consider requiring employees to stay at home, mandating the use of paid leave (e.g., vacation and PTO) at company- determined times, not compensating employees at all while on leave, and other leave-related policies raising a host of legal and business issues. Pay issues for both exempt and non-exempt employees under the Fair Labor Standards Act are also triggered by employee absences initiated by the employee or the employer.

Occupational Safety and Health Act (OSHA)

OSHA’s “General Duty” clause requires employers to provide a workplace free from recognized hazards likely to cause death or serious physical harm. Moreover, OSHA provides that employees may refuse to come to work if they reasonably believe that there is an imminent threat of death or serious physical harm.

Health Insurance Portability and Accountability Act (HIPAA), Americans with Disabilities Act (ADA) and State Privacy Laws

Employers attempting to gather information about the spread of coronavirus or other diseases among employees should be mindful of applicable privacy laws. HIPAA prohibits health plans from disclosure of employee health information, but may permit uses or disclosures of protected health information that are necessary for public health reasons. The ADA’s privacy provisions grant protection to all employees with respect to employer medical tests and inquiries and the dissemination of employee medical information. Many states also have medical privacy rules regarding the disclosure or use of employee health information. For more information regarding employer and employee rights and obligations under the ADA during a pandemic, click here.

National Labor Relations Act (NLRA)

Employers with unionized employees may be restricted by collective bargaining agreements in their ability to change policies in response to a pandemic or other business disruption. Refusal to work because of unsafe work conditions may be considered protected concerted activity should employers take action against such employees.


Permitting or expanding the use of telecommuting in the event of a pandemic or other emergency raises various issues. For example, telecommuting may increase the risks of disclosure of trade secrets and other confidential business information. Employers may also want to review policies and practices regarding work at home to ensure compliance with state and federal overtime laws for non-exempt workers to whom telecommuting is made available.

What Should Employers Do

Employers should actively monitor developing events and take measures as circumstances warrant. There are several good resources available on the Internet related to pandemic preparedness and coronavirus in general:

Employers should avoid overreacting or acting rashly without fully considering the consequences. Doing so may expose employers to unnecessary litigation risk and cause undue alarm among workers. For example, where a pandemic is associated with specific countries, employees should be cautious to avoid potential claims of disparate treatment and harassment based on race or national origin as symptomatic employees are told to remain away from work or subjected to medical monitoring or inquiries.

Nevertheless, employers may want to consider the following steps to help prepare their organizations for the spread of coronavirus:

  • Keeping abreast of government advice (i.e., WHO, CDC, etc.) and communicating this to employees.
  • Reviewing your organization’s emergency contingency/disaster recovery plans to ensure continuity of business in the event of mass closures, travel restrictions, and quarantine situations.
  • Updating contact details of employees and circulating emergency contact details for key employees.
  • Carrying out a risk assessment to ensure good hygiene practices in the workplace, identify potential improvements, and train employees on best practices.
  • Modifications to travel practices including restrictions on non-essential travel, requiring employees to report all international travel, and mandating use of leave for a period of time for employees who have recently travelled internationally.
  • Temporary expansion of employee sick leave, leave of absence, telecommuting, and remote-working programs (i.e., reducing the incentive of sick employees to come to work for fear of losing pay).