Your bills are rising, customers are spending less, and you have creditors to pay. Sound like a familiar story? With inflation reaching a 40-year high it is a story that resonates with many business owners right now.

Russia’s invasion of Ukraine and post-pandemic demand have hiked up prices for consumers and businesses. Rising costs are the main concern of business owners, only ahead of supply chain issues and staff or personal illness.

1 in 10 SMEs experienced energy rising by more than 20% in 2021 and 30% of small business owners say they will have to reduce their energy use to save on running costs – something that isn’t possible for everyone.

This rise is putting pressure on businesses. Not only do you need to maintain quality and keep customers happy, you also need to find ways to reduce costs.

The impact of rising bills on business

Rising bills are going to impact your business in a number of ways. With inflation and energy prices skyrocketing, operation costs will rise too. Borrowing your way out of debt might not be an option either, as the interest rate moves from 0.75% to 1%.

Small businesses operating with debts are having to close their doors, while limited companies find ways to absorb the rising costs. Personal guarantees can be a real cause for concern at this point. We advise businesses on how they can challenge guarantees and achieve settlement deals that are in their favour, giving you peace of mind.

How can small businesses manage rising costs?

Increasing your own prices may seem like the natural thing to do to combat prices rising, and in fact, 1 in 4 small businesses have already done this. Others have reduced energy use — however, 1 in 5 say this negatively impacts business.

Keeping costs low, while still delivering customer satisfaction and maintaining quality is the real key here. It’s not an easy task, and it’s one that takes time — with negotiations and research taking you away from your daily operations.

We work with companies to renegotiate loans and payment terms, defer payments, change suppliers, tactfully collect debts, and work with your creditors to reach a suitable payment plan.

Customer satisfaction needs to be a priority of any business. We can help you to keep your customers happy with great quality products or services, while working to reduce costs, even during these challenging times.