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King's Lynn Complete Commercial Finance: businesses need to review 2022 finances

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With rising costs, supply chain and staffing challenges, local businesses need to review their finances for the year ahead, writes Complete Commercial Finance’s Karl Lanham.

How has your 2022 started? As we near the end of the first month, there seems to be a new positivity among business owners that we speak with as we enter the endemic and with the removal of restrictions hopefully just ahead.

However, this upbeat mood is slightly tempered by the challenges which became evident in 2021 and which continue to create logistical problems for local firms.

Karl Lanham of Complete Commercial Finance.
Karl Lanham of Complete Commercial Finance.

Rising costs, supply chain disruption and recruitment are all affecting the way that companies will operate this year, and a national survey of 5,500 businesses conducted by the British Chambers of Commerce in early January revealed that almost 60 per cent of firms plan to charge their customers more for goods and services over the next three months.

Respondents said that rising inflation and shortages of imported goods had led to a decline in sales in the last quarter of 2021, and that consequently this has impacted their cash reserves.

Simultaneously, Goldman Sachs has predicted that inflation could rise to 6.9 per cent by April, the highest level on record, and while we can’t control this directly, one way that businesses can help to protect themselves is to review and organise their finances.

It may sound simplistic, but having a cash reserve can make an enormous difference to a company’s performance and ability to withstand market pressures.

If your firm is struggling or cash reserves are dwindling, particularly in the tricky first few weeks of the year, by organising business finance now you can create a buffer to steady performance.

When we speak with companies in the region, particularly in the early stages of growth there is often a reservation to take on commercial finance, but by using this as a business tool – much as you would invest in accounting software or a company vehicle – for a small cost you can ensure there is stability in day-to-day operations.

There is a vast spectrum of finance options, from a traditional business loan, asset and vehicle finance to invoice discounting and cash advances, and navigating this can be overwhelming, so working with a professional commercial finance broker will make a world of difference to making the right decisions.

Understanding the advantages of one product type over another and the criteria each lender will require to approve funding is an area that will undoubtedly benefit from professional advice.

None of us know the future, and facing the current issues before they become problematic or disrupt performance is the right decision for any business owner. If you know someone who is experiencing sleepless nights or could use a helping hand to get their firm’s finances sorted, be sure to pass this advice on and let’s plan for better times ahead.

* Need to get your business finances sorted? Contact Karl Lanham at Complete Commercial Finance on 01553 611619 or visit ccf.finance

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