intelligent

Tough trading conditions have continued since the start of the pandemic , two and a half years ago , with many still in debt due to the effects of COVID-19 on their business . The increase in business alongside high levels of inflation and supply chain issues will squeeze profit margins even further .

What were once lifeline loans are now going to be hit with more interest , making them more expensive to pay off . Combined with inflation which is pushing up prices of fuel and other goods , the cost of business may become too much for some small businesses . Not only is this problematic for the future of businesses themselves , but also for business owners , 83 % of whom already say that they worry about their financial situation according to The Accountancy Partnership ’ s research into SME owners ’ mental health .

Small businesses should review their business plans to ensure they are resilient in the current climate , prepared for eventualities , aware of cash flow and aware of the risks of borrowing in a highinterest environment .

Loans already taken out should be on fixed interest rate so will not be impacted , however new lending on vehicles , machinery and commercial property are set to be at much higher rates .

SMEs are the fabric of British business , and while there are steps businesses themselves can take to weather these high-interest times , the most impactful support must come from the government . Failure to support small businesses will lead to increased insolvencies , spelling trouble for the country ’ s economy and the well-being of entrepreneurs . �

SMALL

BUSINESSES SHOULD REVIEW THEIR BUSINESS PLANS TO ENSURE THEY ARE RESILIENT IN THE CURRENT CLIMATE .