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Keep calm and carry on - Will the surprise election result affect your business?


We are in uncertain times politically, with the unexpected election result and Brexit looming. However for SME Solicitors’ clients, it seems to be “business as usual” as Worcestershire continues to thrive and invest in the future.

Our advice to our clients at this uncertain time is, stay positive, carry on building your business, but make sure you have protected your business to minimise any issues you may have further down the line. Now is the time to look at the risks to your business and manage them effectively.

In particular, we recommend you check the following:

Your terms and conditions and business contracts

Do your business to business contracts need revision?

Consider what happens if you do not get paid, or the other party is in financial difficulty? Check when you can cancel the contracts and what your remedies are in the event of any default by the other business.

Does your contract effectively limit your liability? Do your consumer contracts leave you exposed beyond what is legally necessary? 

Your governing document/contract

Do you need to put in place a shareholders agreement, or partnership agreement to regularise your business? This could make provisions for how decisions will be made, what decisions require unanimous consent (such as borrowing past a certain level) and what contribution both financially and in terms of time, each party should make to the business. It can also cover what would happen in the event of a dispute, the financial difficulty of one party, or a winding up of the business.

Contracts of employment and employee handbooks

Do your employees have a written contract or statement of terms? This is required by law in most cases after two months of employment. Consider what you are putting in your new employee contracts and job descriptions, particularly if you think you may require them to be flexible in their roles given the current climate.

Property matters

Are you thinking of renting a commercial property? If so you may wish to consider more carefully issues such as whether you want a break clause, rent reviews and how long you want the lease for. Likewise, landlords need to consider carefully the viability of their prospective tenants, and whether they require rent deposits or a personal guarantor. If you have tenants holding over, now may be the time to deal with getting a formal lease in place, to clarify their obligations and sort out the rent while the market is strong.

Cash flow/debt recovery

With the current uncertainty following Brexit and the recent election results, it is critical that you take control of your company’s cash flow. Our top tips for achieving this are sending your invoices in a timely manner and making sure your credit control procedures are robust. Late payment demands and letters before action are important to show that you are serious about collecting your debts, but also provide early warning signs of troubles your clients may be experiencing. 

 

Please contact Shaun Owen or Yvonne Tivey on 01905 723812 or Yvonne.tivey@smesolicitors.co.uk for further assistance in dealing with these matters

 

Added: 09 Jun 2017 15:08


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