Finance options available to support UK businesses

MONEY MATTERS

Finance options available to support UK businesses

It is no secret that the UK is currently experiencing a difficult trading climate, which is having a large impact on a lot of UK businesses. From the events in Ukraine to rising energy costs, all whilst great uncertainty surrounds the UK government, it is no surprise that businesses are lacking confidence right now. Specifically for chip shops, rising energy and supply costs are having a detrimental impact on sales numbers as the price of cooking oil, potatoes and fish (all quite important components!) are increasing, having a knock-on effect to the selling price. This is essentially what is proving challenging as businesses aren’t the only ones struggling with the cost-of-living crisis and it’s the consumers who may be unable to afford the increased cost of fish and chips.

How can I offset rising costs? The bad news is that the majority of businesses are very limited on options as to how they can combat the effects on their business. Truth be told, the majority of companies will already be doing everything in their power when it comes to damage limitation during the climate.

However, one option that can be explored is investing in more energy efficient frying ranges and fridges as this can provide a huge benefit by cutting down energy costs. Most will not be in a fortunate enough position to buy this new equipment outright, but luckily there are a variety of different ways that the kit can be obtained.

So how does it work? Right now, cash is king and JR have seen many clients approaching us recently who would have been using their cash last year. Instead of paying a singular upfront cost that would have one large financial impact upon purchase, leasing allows business owners to spread the cost of the equipment over a period of time to help with cash flow and make the kit more affordable. Furthermore, leasing options can be very tax efficient, reducing your tax bill and cost of borrowing. It also allows businesses to acquire better quality kit as the cost is spread so they can afford to spend more.

How does this benefit my business? Remember, in uncertain times like these, cash is king. Using finance will keep your business flexible and adaptable. You never know what’s around the corner so keeping your business in a position where you are ready for anything by having cash in your pocket is the most advantageous thing you can be doing right now. Not to mention the fact that your equipment may become cost-deductible from your Corporation Tax through tax relief benefits.

We really wish there were more things businesses could do to cope with the rising costs of supply and energy, but it appears options are extremely limited. Improve your shop and assets and create the right environment your customers want to visit! Even after the ending of all backed government loans, we’re still here to support you and your business.

Ensure you’re utilising what is available to you to bring costs down, and get in touch with us today on 0161 429 6949 to get the ball rolling with your leasing agreement.