Every small business across the country has faced unprecedented finance challenges in the wake of the COVID-19 pandemic. For example, many have experienced a loss in custom alongside rising monthly expenses. As such, it’s hardly surprising that a recent study found that “small and medium-sized enterprises are now collectively carrying around £36 billion more in debt than they were in January 2020, pre-covid.“
As such, if you are struggling to get your business’ finances in order, you aren’t alone. Thankfully, there are many financing options available to help and support small businesses in 2023 (and beyond).
A study conducted by The Morning Advertiser revealed that 32% of small business owners are worried about thier finance. However, few are aware of the breadth of resources available to them to combat this.
With that in mind, here are just some of the sources of finance for small businesses you may want to consider to start the new year on the right foot.
Invoice Financing for Small Businesses
Invoice financing may be your best solution if your primary concern is the cash flow throughout your business. This is a process where you can borrow money against unpaid finances – so that you have access to this money right away, as opposed to waiting around for the invoice to be paid. Of course, this type of financing requires you to pay an upfront fee, which varies depending on the size of the loan itself.
A Small Business Loan
Taking out a small business loan can also be a great way to better handle (or control) your finances, as it again gives you easy access to the funds you desperately need. This money can be spent on daily operational costs or investments into your future. For example, some loans can be used to develop new products that will increase your revenue.
There are countless loans to consider, such as the enterprise finance guarantee or the HSBC Small Business Loan. However, you should ensure that you take out a loan from a reputable company that you know you can trust.
Supporting Small Business Relief
As the COVID-19 pandemic brought around many challenges for businesses, large and small, there are also many systems in place to reduce these complications. This includes the supporting small business relief, which helps business owners mitigate the resultant cost-of-living crisis by helping “eligible SMEs adjust to rising rates by capping the increase in bills to £600 for the next financial year.”
Worried about your financing options for 2023? Want to share your own financially savvy tips with others? Write for us!
The Chamber of Business is written by financial and investment experts to keep you up to date on the latest support available for SMEs.