Finance Update – Actions this Week

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At this stage, with the shutdown of non-essential businesses and the curtailment of work, transport firms are beginning to see a clearer picture of what financial issues that lie ahead.

As the majority of transport firms are being significantly affected, it is time now to be interacting with all finance houses that assets have been financed with. Place a workable moratorium on payments. All finance houses are now working with clients. Where the business is clearly affected and the assets are stood down, a deferment of all or the majority of the payment is applicable.

With the construction industry stopped (other than medical building) the lay-up of specialised tipper, block and mixer units is the only option as disposal is not realistic or financially wise. On the occasion of this crisis the Banks are working with clients to be the solution and assistance, while ten years ago they were part of the problem.

Government support to assist businesses keep key employees is admirable and if employees have to be laid off the increase in COVID-19 payment, along with easing of employee mortgage payment and other financial commitments will significantly assist. Transport as an essential industry will play its part in lifting the country from this crisis, supporting agriculture, food processing and pharmaceuticals is crucial. New and innovative ways of operations will be devised as we go through this crisis. Groupage business is busy, home deliveries and internet shopping will be the new norm and while the convoy of army vehicles ex-Dublin airport with PPE from China, it’s the health care groupage networks that deliver medical care next day pre-10am all over this country that actually make the logistics chains work. It’s a changing environment but at this stage transport businesses should have a financial plan in place and its workers informed of expected next stage developments and remember we are now 1 week closer to the end of this crisis. Donal Dempsey