The new financial year has brought some challenges for UK SMEs. The national minimum wage increase, whilst much needed for many, combined with the increase in National Insurance Contributions are squeezing many small and medium sized-businesses.
The economy appears to be at an impasse too with SMEs having concerns on economic growth and although the UK is not directly impacted, the potential global trade war threatens to lower growth expectations and cause further inflation increases.
What can businesses do to strengthen their cash flow against these challenges?
“Ensuring business continuity during challenging economic times is pivotal for SMEs,” explains Ric Simmons, Managing Director of Praetura Asset Finance.
“Utilising asset finance funding ensures businesses can stay competitive and responsive to market demands by upgrading or replacing assets as the business grows, or as technology evolves. This means businesses don’t need to worry about the sunk costs of older assets that no longer serve their purpose efficiently.
“Another useful tool that asset finance funding provides is asset refinance: essentially allowing business to unlock the value held in their equipment (vehicles and machinery), to provide an injection of working capital. This can help with cash flow or to fund new projects, whilst the business continues to be able to utilise the asset. Asset refinance can also allow companies to consolidate hire purchase and leasing agreements often into lower and more affordable monthly payments.”
With cash flow being a primary concern for SMEs in these economic conditions, asset finance ensures businesses can preserve cash flow which helps mitigate against financial strain caused by external factors.
Asset finance offers predictable repayment terms to SMEs, providing assurance that businesses won’t face large fluctuations in their financial obligations.
At Praetura Asset Finance, we ensure our financial facilities enable SMEs to stay competitive, agile and successful even in challenging economic conditions. Please do get in touch with the team to discuss any of your client’s requirements: https://www.praeturaaf.com/team/
