All sectors of the economy seem to be affected by this unprecedented crisis. Difficulty in obtaining supplies, drop in orders and attendance, sales and cash flow, deployment of a new organization or short-time working plan... So many problems that hit all companies, without distinction.

If this crisis can jeopardize the survival of companies, certain risks can be identified and limited to stem the negative impacts of the crisis.

 

Identify risks in times of crisis

A limited supply

Every day there are new reports on the impact of the coronavirus epidemic on global supply chains and manufacturing operations.

The stoppage of the Chinese economy for several months has had a strong impact on some companies. The drop in production in Chinese factories since the beginning of the pandemic has created real supply difficulties for more than 2 out of 5 French companies. The arrival of the virus in Europe will also affect supply chains.

 

Declining sales and attendance

The global economic slowdown and the containment measures implemented in various countries are having a strong impact on business activity. The decrease in orders and cancellations are multiplying and can, in the long term, endanger the economic and financial balance of companies, even leading to a possible cessation of activity.

If some sectors seem to be more affected than others: events, travel, transport, hotels and restaurants... It is now clear that no economic actor will emerge unscathed from this unprecedented crisis.

 

Telework and new organizations for companies

The coronavirus crisis is forcing companies to reorganize to avoid health risks as much as possible. The closing of schools and nurseries forces employees to adapt. The generalization of telecommuting to limit the risks of contamination requires companies to thoroughly review their organization.

These changes can have serious consequences, such as a decrease in team productivity. Resorting to short-time work may be a short-term solution, but certainly not in the long term.

 

How can they be contained?

Experts are struggling to determine how long the crisis will last; the economic consequences are also difficult to quantify at this time. However, some measures can be put in place to limit the impact of the crisis on the company's activity.

 

Protecting your cash flow

The problems related to your cash flow remain the major issues in times of crisis. In order to protect yourself as much as possible from the negative effects, certain measures can be taken:

  • Recovering your unpaid invoices: setting up a team dedicated to the recovery of your unpaid invoices.
  • Postponement of your tax deadlines: in case of economic and financial difficulties of your company, you can make a request via the following link.
  • Deferral of social security contributions: by requesting your Urssaf via your personal account in order to obtain a deferral of the payment of your social security contributions.
  • Regularization of contributions for self-employed workers: if you are self-employed, you can ask for the anticipation of the annual regularization of your social contributions.
  • Rescheduling of your bank loans: the State and the Banque de France - via the credit mediation -support companies that wish to limit their cash flow difficulties.
  • BPI France loan: BPI France has undertaken to guarantee up to 70% of the cash loans granted by banks to companies affected by the consequences of the coronavirus crisis.

 

Adapting your organization

In order to limit health risks and to compensate for the closure of schools and day-care centers, companies can opt for measures to adapt the organization of the company. For example:

  • Implementation of telework 
  • Encourage the use of paid leave 
  • Use of partial activity: the use of partial activity has been facilitated to help companies faced with sharp drops in activity. The government has announced that companies have 30 days to submit their partial activity request, with retroactive effect.

 

The storm that French companies are about to experience because of the coronavirus epidemic is going to be strong... and it is already palpable for many professionals.

In order to face future difficulties, the evaluation of the risks for your activity is vital to limit the effects of the crisis. You can already rely on all the assistance devices you can use.

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