COVID-19: Positioning Your Business to Survive this Season
The global outbreak of COVID-19 has reached the United States with significant impact. Right now, we are all doing what we need to do in order to keep our families and communities safe. But as we settle in to what experts say could be weeks, if not months, of slowdown, we also recognize that the business impact of the virus cannot be underestimated. Each of us will be affected in different ways, from lost revenues to supply chain interruptions to personnel shortages to logistics breakdowns. Needless to say, there will be a lot for you to do in the immediate term to protect and stabilize your business.
But now is also a critical time to be proactive. Kleinberg Kaplan is here to assist. As you think about what you need to do to weather the operational and revenue impact of the virus, it makes sense to also start preparing for financial and credit impact. Reach out to your lenders and tell them what you expect and what you are doing in response; help them understand the seriousness of the situation and also your preparedness and proactiveness. If necessary, start thinking about covenant and maturity adjustments. At the same time, expect similar calls from some of your customers and suppliers and be ready to talk about adjusting terms. And understand the potential impact of a bankruptcy filing by your customers or suppliers. The time to start talking to your operational and financing partners is as soon as you can and from a position of credibility and confidence.
Please involve us early to maximize your options for success and to help minimize COVID-19’s impact. Kleinberg Kaplan’s multi-disciplinary team of lawyers has broad experience advising businesses in all aspects of an economic downturn. Let us help you deal with your balance sheet so you can focus on your business plan.
We understand that these are challenging times for our clients and friends. Kleinberg Kaplan has been diligently monitoring the updates and developments pertaining to COVID-19 and the potential impact for our clients. We will continue to provide updates as the situation develops.