UNCERTAIN TIMES AHEAD!
- David Manklow
- Jul 7, 2022
- 2 min read
Uncertain times seem to be ahead of us as the Bank of England has warned us that the economic outlook for the UK and the rest of the world has “deteriorated materially”. Add into the mix the confirmed resignation of our prime minister - Boris Johnson, this afternoon certainly means that at this moment in time - reassurance and stability are now needed for business all over the UK as we move forward.
SMEs and households alike in the UK are coming under increasing pressure due to the energy and fuel costs soaring to record numbers. In April, domestic energy bills jumped after the price cap was increased by 54% to £1,971 for the average household. Experts believe this could rise again in October, to around £2,800, which could help to push inflation up to more than 11% later this year. Another surge in gas prices in Europe and the UK which could push inflation higher again has added to fears the economy could slide into a recession.
The UK saw its petrol and diesel prices increase rapidly in the last 30 days as unleaded rose by a record of 16.59p since June. By the end of June, it was revealed that drivers are now paying £9 more to fill up now than they were only 30 days ago. The cost of filling a typical family car’s 55-litre fuel tank with petrol has gone from £80.05 on 3 January to £109.29 today.
If the management of business cash flow wasn’t an issue previously, it would certainly be on the horizon as SMEs take another hit. Reducing monthly repayments on existing financial commitments is certainly achievable through our refinance products. In addition, keeping working capital within the business is vital, but essential equipment purchases can still be made using equipment finance without the significant upfront outlay.
Businesses can utilise finance options such as equipment finance, business loans or refinance. These methods will help your business cope with the recent inflation as they manage your cash flow more effectively whilst stabilising or even growing the business. Act now and keep your business moving forward!
To find out more about the Benefits of Asset Finance, Equipment Finance or Business Loans then please click on the link to download the full PDF: https://lnkd.in/ePHAgzn9 or contact one of our account managers: info@approved-finance.co.uk or call 01908 429888
