SME struggles continue with warnings from the BCC (British Chambers of Commerce) of added pressures looming.
It highlights two new current worries.
The first is that the under proposals being considered by the Prudential Regulation Authority, SME lenders will be forced to hold a higher level of capital against loans to the sector.
This, the BCC argues, will make “credit both less accessible and more expensive for the vast majority of businesses,”
At the same time from 1 April, businesses face an 85% decrease in energy support with the Energy Bill Relief Scheme coming to an end.
The FSB (Federation of Small Businesses) argues that “Access to finance is crucial to increase small business investment.”
It says that “An emerging concern around small business access to finance is the success rate of applications. Since the peak in success rates during the pandemic in mid-2020, the rate of success has halved, with our own Small Business Index data showing it falling to an all-time low of just two-fifths of applications”.
It is more then ever crucial that small businesses do everything they can to keep on top of their financial situation and seek help if they need it.
We have a free cash management tool for you to download here.
It will help you know exactly where your business is financially.
After that, the next step is to talk over your situation with a restructuring adviser.
K2 Partners is here for you and happy to have an initial chat to understanding the issues involved in the next steps you may need to take.
We’re here to help.