Business leaders have revealed that cash flow is proving to be a major headache for companies in the wake of the coronavirus crisis.

The Isle of Man Chamber of Commerce has carried out the second in what will be a regular series of Covid-19 business impact tracker surveys with more than 400 businesses contributing to the poll.

The survey sheds more light on the challenges facing businesses as a result of the health emergency.

Highlights included:

l82% of the respondents expect their business to survive the current situation provided that they receive the right government support.

lCash flow continues to be a concern with 94% of respondents reporting a decrease in revenue since the crisis hit. For 59% of respondents revenue has decreased by 90 to 100%.

l 70% of respondents reported that they have had to temporarily close their business

l42% of businesses expect the current situation to impact their business in three months’ time.

Chamber president Caren Pegg said: ‘Cash flow, which was the main concern of respondents in the first survey, continues to be the major factor impacting businesses.

‘One aspect of the latest poll of great concern to Chamber is that 19% of businesses have had to permanently close whilst 15% are considering it.

‘This indicates that even when all of the lockdown restrictions have been lifted, there will be some businesses or areas of the economy that will not return.

‘However, there is more positive news too with 82% of respondents expecting their business to survive the current situation if they receive the right government support at the right time.’

She added: ‘Businesses now need to know what the plan will be for the reopening of the economy.

‘Even if the exact timescales for this cannot be confirmed yet, it will be very reassuring for businesses to know that the focus is shifting towards getting the economy back on track and that there is a plan for how this will be tackled.’

Here are some of the other headlines from the second survey which covered April 8 to 15:

Businesses furloughing employees or reducing workforce

l50% of businesses are planning to furlough employees over the coming week.

l26% reported that they are planning to permanently reduce their workforce over the coming week.

Awareness of government support schemes

lThe Salary Support Scheme, MERA and Business Support Scheme have the most awareness and 68% of those that took part in the survey have requested funding. Chamber’s next Impact Tracker survey (April 16 to 22) will seek to capture how many businesses are not eligible to receive support from the schemes.

lOnly 14% of scheme applicants are in receipt of funding. With the application for the Salary Support Scheme opening this week, Chamber hopes to see the figure of those applying for funding to rise significantly.

Getting businesses the lifeline that they need soon will be key in determining how well our economy will be able to recover from these unprecedented circumstances.