Posted: Monday, 4 August 2025 @ 10:53
Most of us might not be quite ready to think about the winter months, but for businesses plans will already be well underway for the chillier seasons. Whether you're prepping stock for Christmas, anticipating a quieter period, or looking forward to the busiest time of year, managing cash flow in the winter is always something that needs thinking about.
One of the things that almost all of us worry about when the weather gets cold, is energy bills, and businesses are no different. However, with a sensible approach to business loans for capital management or investment in energy efficiency, you can navigate the winter months, keep your office space warm, and maximise opportunities. Here's how.
Three in five companies say energy costs inhibit growth
"Three in five companies report that rising energy costs are hindering their expansion plans, impacting profitability and competitiveness" wrote The Times, commenting on EY research that "reveals 62% of UK companies say rising and unstable energy costs are impacting profitability and competitiveness."
In an environment where every penny counts and where growth is not only in the personal but national interest, SMEs need to find opportunities to facilitate growth and make themselves more resilient. One way of doing that is through sensible cash flow, where measured borrowing can help you be a bit smarter.
Smart business finance
Borrowing to make your business more resilient can be done in several ways. By thinking ahead and leasing or borrowing money at fixed rates, you know where you stand, and you can keep cash in the bank for day-to-day running costs.
Asset finance
If you need a new machine or piece of equipment, instead of buying it outright, you might choose to lease it, or use asset finance funding, so that you retain cash to operate the business each day. For example, you might invest in more energy efficient office equipment to keep bills down and improve your eco-credentials, perhaps with more up-to-date computers, energy-saving monitors, or energy-efficient HVAC systems.
Short-term business loans for cash flow
Make sure you have the money to pay winter heating bills, and other additional costs that arise as we head into the colder months of the year, whilst giving yourself the breathing space to pay them off over a longer period of time. Working capital loans can be used to cover the cost of bills as they come in, without disrupting daily operations.
Not intended as a bandage solution for financial difficulty, but as a proactive approach to sensible capital management, dedicated loans can help businesses to make appropriate provision for lump sum payments, repaid over a more manageable period between three and 12 months. For example, Rivers offers short-term business loans from £5,000 to £100,000.
Key features include:
- No early repayment penalties
- Interest is fixed over the course of the term
- Repayments made at 14-day intervals
- Renewals available after 50% of the original loan has been repaid
Medium-term business loans for investment
Alternatively, you can use medium-term business loans to invest in energy-efficiency and sustainability developments at your business, to improve your company's ESG targets as well as drive down winter bills. For example, you might renovate your office space by adding better insulation, upgrading your heating system, and installing energy-efficient windows and doors, whilst paying for the works over a period of time. For example, Rivers offers medium-term business loans for terms between 24 and 60 months, in amounts ranging from £5,000 to £100,000.
Key features include:
- Interest is fixed over the course of the term
- Repayments are made on a monthly basis
- Fees are clear and transparent with a one-off arrangement fee deducted from your loan
Be smart this winter. Find out more about Rivers’ business loans and asset finance or contact our team to find out whether you're eligible for our funding solutions.