1 month ago
In the dynamic and sometimes discombobulating world of business finance, decisions around lending can significantly impact a company's success. This guide explores how businesses can fall into bad lending habits, details the benefits of responsible loan usage and sheds light on the upcoming Financial Planning Week.
Financial Planning Week, hosted by the Chartered Institute for Securities & Investment (CISI), is an annual event designed to promote educated financial planning and empower SMEs with the tools they need for a secure financial future.
This year, the week has been strategically moved from October to mid-January to better align with the time when people traditionally assess their post-Christmas goals and aspirations for the year ahead. However, the CISI has reaffirmed its commitment to supporting the global initiative.
Financial Planning Week runs from Monday, 22nd February and serves as a platform to celebrate the benefits of financial planning. It aims to raise public awareness, share knowledge and enhance money management skills.
Financial planners across the UK will organise a series of events, including:
Free walk-in surgeries for the public
Local campaigns promoting financial planning
Media articles to educate and inform
Engaging social media posts to spread awareness
Join the conversation on social media using the official hashtags:
Businesses often get into trouble when they become too heavily dependent on debt to finance their operations. Overborrowing can quickly build up an excessive burden, making it challenging to meet repayment obligations.
Failing to put any thought into financial planning can result in SMEs struggling to anticipate their future financial needs. Without a strategy, businesses may resort to impulsive and poorly thought-out borrowing.
Depending on a sole lender could pose unexpected risks and throw a significant spanner in the works. Companies should aim to diversify their funding sources to minimise their vulnerability to market forces and other external factors.
Utilise financial planning to set clear business goals and anticipate future needs. Align your borrowing strategy with your business objectives and make loans work for you, contributing to sustainable growth.
Carefully review loan terms, interest rates and repayment schedules before committing to any borrowing. Understanding every term, clause, and catch ensures that the loan aligns with your business's cash flow.
Encourage financial literacy within your SME, ensuring key decision-makers understand the implications of borrowing. This approach will empower your team to make informed and responsible financial choices.
Financial Planning Week 2024 has the power to be a pivotal moment for businesses looking to reassess their financial goals and collaborate with professionals. SMEs should embrace the opportunities presented during this week-long initiative to enhance their financial literacy and work towards a stable financial future.
At BusinessComparison, we provide expert assistance in identifying the most suitable loans for your business. Our comprehensive comparison includes a range of business loans from reputable high-street banks to more specialised, small lenders.
A wide array of business account providers offer a range of accounts that feature overdrafts, online account management, and app integration to balance text alerts. Having a business-specific account gives you a clear separation between personal and business finances.
We help you compare essential business products and services, ensuring you get the best deal and helping you with your bottom line. Save time and money with us by comparing today.