We can all agree that the past few years have brought uncertainty and worry. For business owners, these times can be especially troubling. With the rise of inflation and living costs, business owners must look for solutions.
These increasing pressures have left many directors in panic and uncertainty. Worrying about what direction to take their business in. SMBs especially, due to their lack of resources, will be feeling the pressure.
But don’t worry, Apollo is here to help! In this article, we will analyse three ways the cost of living crisis is affecting UK SMBs. We will also look at a practical solution to these issues.
Rise of fuel costs
Prices reaching record highs will cause direct and indirect concerns. Businesses in delivery and transportation face new challenges especially. But, all businesses will feel the implications. Because, supply chains, employees, and customers are also affected.
Rise of energy costs
Two in five managers expressed concerns over the rise in energy costs. Some businesses even saw gas bills rise to 250%! Businesses are not covered by the energy price cap. Further risking the increase in energy prices.
Cash flow imbalances
Maintaining a healthy cash flow is vital to a business’s success. Start-ups and SMEs will struggle when financial challenges occur. Because they do not have the cash reserve available. Add the prospect of rising costs and losing customers, and it’s no wonder owners are worrying.
So what do you do?
Reviewing business expenses would be a logical place to start. You could research for more cost-effective suppliers, or review your premises or office. You may be able to move into a smaller office. Or introduce a work-from-home scheme which will reduce energy and gas bills.
Another solution would be to look at funding solutions. Reviewing the competitive funding solutions can give you that boost to cash flow.
One option you will want to consider is invoice financing. Invoice financing allows you to access cash tied up in invoices, allowing you to have the cash sooner. Easing cash flow pressure and providing a professional credit control service.
Apollo provides invoice finance solutions to start-ups and SMEs regardless of financial history. Take control of your business finances and capitalise on investment and growth opportunities.