BDC Issues Guide for Businesses Navigating COVID-19 Disruption

The Business Development Bank of Canada (BDC) has issued a seven-step guide intended to assist businesses in maintaining operations during the disruptions caused by the COVID-19 pandemic. The guidance focuses on forecasting cash flow and ensuring business continuity in challenging times.

According to a BDC survey conducted in March, 73% of Canadian companies were already experiencing negative effects from the crisis. The bank emphasizes that cash flow management is critical for sustaining operations and facilitating recovery post-crisis.

The guide's initial steps address employee health and safety, including implementing remote work options and contingency plans for quarantined staff. BDC also advises companies to develop a communication strategy targeting employees, customers, and suppliers.

Further recommendations include proactively contacting customers to confirm orders and payment terms, and to pursue outstanding receivables. Companies are also urged to reach out to suppliers to identify potential supply chain disruptions.

BDC highlights the need for businesses to adapt quickly to the evolving situation, focusing on anticipating daily challenges through cash flow control and operational resilience to ensure continuity and support recovery.