Business lenders are warning that SMEs are losing out on funding opportunities by delaying investment decisions following the UK decision to leave the European Union. It comes as it’s revealed that a multi-billion pound programme with the European Investment Bank, designed to get more funds into UK business, may now be off the table. Here’s how you can take action to keep your overheads low and stay afloat whatever the climate…
Make a plan… and stick to it
Adopting a regular and methodical approach to paying bills will almost certainly help you stay on track financially. Your cash flow will be stretched if you make payments sporadically leading to less control of your business. Regularly review how much you spend on your overheads and consider switching phone, office equipment or energy suppliers. Check the contracts and payment timing of bills to suit your business.
Encourage home working
Being flexible with your staff can prevent office overheads and even mean you can keep work space to a minimum. More and more businesses are favouring a virtual working model. There are many working addresses you can hire for this purpose for a small fee. It’s also possible to hire conference or meeting rooms when you need them on an ad hoc basis.
Shop around for your banking, utilities and insurance. Bank charges can vary significantly so it’s always worth doing your research and seeing what’s on offer. Consider what type of services and facilities you require from your business bank account and find one that offers the most cost effective and well suited option for your company needs.
Be invoice savvy
Try to keep the number of days a client must pay you to a minimum and deal with customer complaints or enquires as quickly as possible to avoid delays in payment. Late payments can push up banking costs and leave you bearing the burden. It might be worth looking into using invoice factoring or discounting as a solution.