Busy, busy… but what next?
A fantastic first six months for some, but what lies ahead for local businesses? Complete Commercial Finance’s Michael Moore takes a look at the path ahead
Across Norfolk, business is booming. When I speak to company owners, the first question is, ‘How’s business?’, and the response is invariably, ‘Crazy!’ It’s a welcome return to fortune after last year’s pandemic and while some are making up for lost time, it’s fantastic to see so many sectors – construction, leisure & tourism, manufacturing among them – enjoying a return to fortune.
Our recent survey of business owners confirms this positive outlook, with 91 per cent of respondents confident about the next 12 months’ trading. There are inevitably challenges attached to increased activity including staffing, supply of materials and demand. For many businesses, cashflow can be a major issue when trying to keep all of these balls in the air and in our study 40 per cent of respondents said that cashflow was a reason to consider external finance. However, only two per cent of participants use invoice discounting – now an incredibly flexible product – to help them keep a regular injection of cash coming into the business which is a real shame as it has the potential to relieve many of these pressure.
The survey also revealed a lack of knowledge about where to turn to and the types of commercial finance available as reasons for not exploring external funding. Both of these are hurdles we are passionate about helping businesses to overcome.
The surge in business is an interesting phenomenon and, while we all want growth for our company, it’s important to think long-term and ensure there is stability once levels of activity return to ‘a new normal’. For hospitality businesses expanding their operations to cope with a sensational staycation summer, it’s vital to ensure that the cost of doing so is manageable once international travel opens up more freely. This is precisely where a business loan can help, allowing you to keep more cash in the business while expanding in a realistic and affordable way.
Finance is not a dirty word when it comes to sensible business management and companies which act now to plan ahead will be in a far more robust position in the coming months. COVID-19 has shown us that life is unpredictable, with 51 per cent of our survey’s respondents citing it as the biggest challenge they are facing. In a world of uncertainty, creating financial surety is something I think most of us would prefer and I urge businesses to think ahead and take action now.
