Financial sustainability during COVID-19

Large consumer corporates have a relatively short window to prepare for the impact of COVID-19 on the financial resilience of their distribution and customer networks. Many of these businesses will not qualify for government relief and may seek some form of financial support from their major suppliers, by way of extended credit terms and/or working capital loans. Given the rapidly evolving environment, corporates will need to establish an active flow of monitoring data as quickly as possible to be able to identify and monitor the critical third parties that are most likely to require support. This presentation from Deloitte UK offers some high-level considerations to help plan for the impact of COVID-19 on distribution networks, offering credit risk monitoring solutions and planning.

Topics covered in this document:

• Mapping the customer base in order of priority, focussing on supporting “business critical” customers identified as vulnerable
• The importance of open channels of communication with key customer groups to monitor financial health against recent performance
• Developing a clear commercial rationale to govern requests for financial support as well as scenario planning to support the recovery of stock from customer sites