Building business confidence after the budget

Did the budget give you (if you’re a business owner) or your clients (if you’re a broker) the confidence you were looking for as we head towards the next calendar year? On 26th November the Chancellor delivered a budget that left a lot of business owners feeling flat at best. However, now that we know what we know, we can look ahead, but what does that mean? 

For some, the end of an unusual period of uncertainty awaiting the Chancellor’s announcements will at least enable them to make decisions about business development and investment that were previously on hold. For others, the emphasis will be on ensuring buffers are in place for sensible cash flow. With a profound lack of specific support from SMEs coming from the powers that be, it once again falls to independent funders and non-bank lenders to deliver. 

At Rivers, helping businesses thrive remains the order of the day, and for different organisations and industries needs can vary according to the climate. When we face strong headwinds, cash flow and sensible capital management are more important than ever, providing room to manoeuvre and building in an essential level of resilience. The good news is that there are options, and for many, business funding may be one of them. 

Money as a symbol of confidence  

It's perhaps worth reflecting that above all else, it is confidence which drives business and underpins a belief in our currency itself. In an environment where confidence is not being readily enabled by the world around us, we can reflect on whether there’s an opportunity to build it ourselves? As a lender, we believe we have an important and unique role in that.  

Time, history, culture and different economists have pondered the meaning of money across the centuries, hypothesising in lofty terms its significance and its importance. However, from our perspective as an SME, and as a lender to other SMEs, we consider the functionality of money in terms of enabling business owners to get on with the successful running of their companies with confidence. It’s a tool for growing the bottom line, paying staff, and taking up new opportunities by having the cash to keep things moving and to invest. 

Having access to money  

So, how do we bring these strands together? It's not actually having money that drives business confidence but knowing you can access it when you need it. For businesses, at any time, but especially in a fluctuating economic climate, financial management, including resources for cashflow, is essential. Ultimately, the focus for most right now will likely be on optimising business resilience and that hinges on sensible capital management - where is cash best placed to enable the functional running and/or growth of an organisation?  

For example: Can you make that new piece of machinery start earning before you’ve paid for it?  

Can you use a business loan to develop a new product line and get it to market without depleting your rainy-day cash reserves? One of our Non-Executive Directors, Stephen Bassett, has previously said:

"The situation is a reminder to think about how to make your business more resilient, and one way of doing that is through sensible cash flow, which is where measured borrowing can help you be a bit smarter. Instead of buying the new machine outright, lease it so that you retain cash to operate the business each day. Think ahead and lease it or borrow money at fixed rates, so you know where you stand and you have cash in the bank."  

At Rivers our mission is to help businesses thrive, which is why we offer a portfolio of funding solutions, designed to proactively benefit SMEs based on practical terms, and a tailored approach that means we listen to the individual business case so we can lend responsibly and helpfully. For example, our loans and leases operate on a fixed interest rate, so as soon as a transaction is agreed, you know where you stand from the outset and what your repayments will be each month. The market might change but our arrangement with our clients won't. 

In our experience it’s typical that amidst grim headlines, the UK business community stoically puts axe to the grind and through grit, determination, collaboration and innovation, pulls the country forward into brighter days. Essential to achieving that is the way we provide access to money. 

Interested in gaining access to fast working capital for greater flexibility and cash flow?  

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