Rising operating costs continue to blight UK businesses, with 37 per cent of SMEs surveyed by the Economist Intelligence Unit, on behalf of Zurich, reporting that these challenges pose a significant threat to their company – up 25 per cent on research conducted two years previously.
Often the most difficult financial metric for SMEs to manage, operating-cost dynamics, such as rising energy costs, rents and logistics are forcing SMEs to adapt in order to survive and succeed.
According to the survey, the industries most concerned about operating costs are construction (50 per cent) and manufacturing (42 per cent), predominantly due to the energy requirements in these industries.
Energy consumption is a major issue, however many SMEs are failing to take steps to manage efficiency, with npower’s latest Business Energy Index (nBEI) survey showing that over half of the 4.8 million SMEs in the UK have no methods in place to manage this.
Ensuring funding is structured to cope with the inevitable strain operating costs place on cash flow is a positive move for SMEs. Financial flexibility during times of tight margins and rising operating costs increases operational resilience.
Specialist providers, like Praetura Asset Finance, can be invaluable in offering the best advice and an affordable plan with flexibility aligned to businesses’ commercial goals.
Working with us can also mean immediate access to funds, which can go a long way to taking the strain off SMEs struggling with the challenges of the economic landscape.
For more information, call us today on 0333 323 7800.