Business finances

You may have to think about cash flow, how you plan your business finances, and how much money you have available right now to meet your business expenses and to pay any staff (including yourself).

Maintaining your cash flow Back to top

• Chase up outstanding invoices.
• Start thinking about alternative sources of income – you may qualify for a grant or emergency funding to help small businesses, or members of your trade or profession.
• You could be covered by critical illness insurance or income protection insurance. Check if you have insurance included within your business loans. If so, now’s the time to talk to your insurer about making a claim.

Taking on new work is probably not the best solution at the moment.

Reduce your spending Back to top

• Some spending, such as paying your phone bill, will be essential to keep your business going. Other things may not be necessary for a while.
• If you won’t need your premises for a while, you may be able to reach an agreement with your landlord.
• If you rent a vehicle, check if the contract will allow you to give it back.
• If your business involves selling merchandise, look at how you can manage your stock differently. You could also negotiate with your staff so you can work shorter hours for a period of time, or cut back on money spent on non-essential areas of the business.
• Before cutting back on important spending, consider the long-term impact on your business. How much will it cost you to put those resources back into place when you’re ready?

Business debts and obligations Back to top

If you’re not sure how to pay your business bills or debts, you can get free, confidential advice and help from organisations such as Business Debtline| or Business Link|.

It’s a good idea to get expert, independent advice before you approach your creditors or agree to new finance arrangements.

• Don’t ignore your debts. If you don’t act, they will just get worse.
• If you have insurance, such as critical illness insurance, business insurance or payment protection insurance, find out whether it will pay out now because you have cancer.
• Make sure you’re claiming all of the personal state benefits you’re entitled to. Our cancer support specialists [LINK] may be able to help you.
• Create a budget that lists your income and outgoings.
• Deal with priority debts first. This means debts where non-payment could have serious consequences, such as the loss of your home or business.
• Get independent advice before you borrow any more money. The wrong decision could make your debts worse.

You may not want to tell people about your cancer, but if you owe them money or if you need to claim insurance you will probably have to. You may also be asked for a letter from your doctor confirming your diagnosis.

When you’re approaching creditors, it always helps to have a plan in mind. Be open, honest and realistic about when payments will be made, and tell them where you expect the money to come from.

Paying your tax Back to top

It is important to contact HMRC| straight away if you’re worried about paying your tax on time. You may be able to make arrangements with them to delay payment of certain taxes, or to pay large bills over a longer period of time. If you think your income will be lower while you have treatment, you can also ask HMRC to reduce part of your future tax payments. There’s a special helpline for self-employed people and small businesses|.

Macmillan can’t advise you on business debt and finances, but we can help you with information about personal money matters. Contact our cancer support specialists|.

Talking to the bank Back to top

If you anticipate problems paying your bank the money you owe (for example, your overdraft, business credit card or business loan), you will need to talk to your bank manager. If you’re looking for funding to help you in the short term, you’ll need to explain why.

Before approaching your bank, be prepared to answer any questions about your health. Any information you provide must be accurate. If you have insurance through your bank, for example, this could become invalid if the information you give the bank is incorrect or if you don’t give all the important facts about your health.

If you think you have been treated unfairly by your bank because you have cancer, you should contact the bank’s own internal complaints department first. If you are not satisfied with your bank’s response, you can refer your complaint to the Financial Ombudsman Service|. 

The Equality and Human Rights Commission| also has a helpline that can give you information and guidance about your rights as a person with a disability.

The Equality Act in England, Wales and Scotland and the Disability Discrimination Act in Northern Ireland mean that, when banks are deciding on loans, they are not allowed to discriminate against disabled people. This includes people with cancer, from the time of diagnosis and then for the rest of their lives. Your bank can’t offer you different terms because you have cancer. The bank also has a duty to make any changes needed to make sure people with cancer can still use their banking services.

Expert help Back to top

You may want to look into getting external help with your finances. Perhaps you already have a bookkeeper or accountant. They can help you keep your finances under control while you are taking some time off. If you don’t have this kind of help already, it might be worth thinking about.

A good accountant will save you more money than you pay them. It might also be useful to hire someone to send out your invoices and chase payments to make sure the money comes in as steadily as possible.

One of the best ways to find an accountant or bookkeeper is through personal recommendations. Ask your neighbours, friends and business contacts. Your local Chamber of Commerce or small business group will be able to give you a list of providers of these services. You can also find an accountant through Business Link| or the ICAEW| (Institute for Chartered Accountants in England and Wales). 

If you’re a member of a professional body, you may find that they have a fund to help members facing problems as a result of their health.

You can use the checklist below to identify the support you may need with your business finances, and to come up with some ideas about who can help. Download a blank checklist [PDF, 179kb]|.