The situation surrounding COVID-19 has placed extraordinary
pressure on business' working capital and liquidity, as can be
seen from the widespread media reports of additional funding
requests and drawdowns globally. The situation is fast-moving and
in Ireland, the five main retail banks have already announced a
facility to apply for a "payment break" for business and
retail customers affected by COVID-19. We set out below some
matters for borrowers and lenders to bear in mind when examining
their existing arrangements to determine how to make the best use
thereof.
Forecasts and Communication
Businesses should review in detail their projections for the
next months and identify what mitigating actions can be taken,
including potential sources of capital. If cashflow forecasts
suggest that liquidity is or will become an issue, businesses
should assess options for raising new funds including drawdowns on
their revolving facility, arranging temporarily larger
