Prepare for the pitfalls January invariably presents

Prepare for the pitfalls January invariably presents

We live in rapidly changing times and 2018 has been another year that has flung many a curve ball in the direction of the UK’s small army of SMEs.

We can look ahead and wonder what 2019 is going to throw our way, but as a small or medium sized business, the first hurdle you need to overcome is January.


Stave off the post-Christmas blues

After the fun and frivolities of the Christmas period, comes the cold and severe dullness of January and the joyous annual revelation that everybody’s skint. This is nothing new, it happens every year.

There is a knock-on effect for businesses too. Many an accounts clerk will tell you, that getting invoices paid in January can be more of a challenge and it’s not necessarily because everybody’s been partying the Christmas period away.

Unless yours is a business selling or delivering Christmas produce, presents or events, December can be a slow month. Some wind down, some shut down completely and many could have the delight of a VAT payment being due at the end of December too. This is then followed by customers up and down the land tightening the purse-strings.


Start the new year on a high

For a whole host of reasons, a company’s cashflow and how it is managed is key. Getting the right foundations for this in place at the very beginning of the year can make a massive difference.


So, has your business got the cashflow in place to tackle the new year slump?

What opportunities could you pursue, or trends could you reverse if there was additional working capital in place for January (without extending your overdraft or taking out a business loan)?

The next question to consider, is whether your business has assets? What machinery, equipment or vehicles does your company have?

If you do, those assets could provide the additional cashflow you need to start the year with your best foot forward.


Make the most of your business’s assets

With asset refinance, you can raise funds by unlocking cash from the value of your company’s plant, machinery and transport (whilst continuing to be able to use them).

Compared to applying for a loan, this is a more risk adverse route to finance. You are not taking on any additional risk; instead, by pledging security in equipment your business owns, you are utilising something you already have to benefit your company’s finances.

Other advantages include there not being the same reams of paperwork or hoops to jump through as there can be when applying for a business loan. With a consultant lender such as Praetura Asset Finance, you will be working in partnership with experts who want to help and understand your business, rather than tick a series of credit-scoring boxes. Plus, the funds can be in your bank account within a matter of days.

Asset refinance can also be used to reduce your monthly outgoings, if your firm has vehicles or equipment currently on finance. For example, if a business had financed £400,000 of equipment over a five-year term and were three and a half years into that period; their monthly outgoings could be in the region of £8,500 per month. But with a refinance arrangement of the present-day trade value of the same kit over another four years, the monthly payments could be reduced by more than 50%*.


Let’s be positive about 2018

2019 will no doubt bring new challenges and opportunities. But, how a business starts a year can have an enormous impact on that company’s performance.

Asset refinance could deliver an injection of working capital into your business, to warm up the dreary month that January can so often be.

The time to talk to your local asset finance broker or business finance adviser, to find out more about the options available, is now!


If you want to talk directly to an independent funder, you’re more than welcome to get in touch, by calling
0333 323 7805 or emailing

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