5 Top Tips on How to Save Money in Your Business
Prices have risen rapidly in the UK over the last year with the inflation rate currently at 10.1% – well above the 2% target. With a forecast that the rate of inflation will continue to rise, businesses are looking at ways they can reduce their expenses to keep a strong profit margin.
With most businesses feeling the effect of increased energy and fuel prices, the cost of materials will be taking its toll on specific industries. For example, the cost of food has increased by 10.4% and construction materials is now forecasted to reach a 17.5% increase by the end of the year.
With all the increasing costs, what can your business do to save money?
Ensure that invoices are paid on time
Being paid on time will help you avoid overdraft charges and late fees from your suppliers together with keeping the company productivity at top form.
If you’re finding yourself waiting on invoices to be paid, an invoice finance facility may be the answer. Invoice finance is a way of lending based on what your customers owe your business and rather than waiting days or weeks for your invoices to be paid by customers, lenders advance you most of the value immediately.
Review your existing outgoings
Take a look at your monthly outgoings and see if there is anything that you no longer use, or could cut down on. Such as switching to digital communications will reduce paper and printing costs, is there a software that is no longer used but you’re still paying for or does an employee still need a company car if they’re working from home full time now?
Cut down on your rent payments
Many business owners are looking to own their commercial premises with mortgage payments often being much lower than rent, it’s one way of reducing your monthly outgoings along with owning a tangible asset.
In the long run, once the mortgage is paid off, you will own the property and will have one less monthly payment. Whilst your asset is most likely to go up in value over the years.
Review Existing finance agreements
If you have multiple finance agreements, you could save money by consolidating business debt or if you have a single finance agreement, review your agreement to see if you can now secure a better rate.
Consolidating business debt can ease cash flow with one monthly payment as opposed to multiple direct debits going out on different days. Additionally, you will be able to see if you can find a more competitive rate and extend your term longer if you wish.
If you have improved your credit rating over the last few years, it may be worth seeing if you’re eligible for better rates – decreasing your monthly outgoings and your overall costs.
Remote work 1 day a week
If you’re a business where it’s possible to remote work, doing so for one day a week could save your business money. For one day a week, your business premise won’t be using any electricity, heating, gas and other supplies such as paper, ink for printing, tea, coffee etc. All of these will make a contribution towards making a saving in the long run.
Contact Amplo Commercial about Leasing Finance
If you’re looking for finance to help with your business’ growth, ease cash flow or to purchase a commercial property, get in touch with us for a no-obligation discussion. Call 01270 443510 or complete our contact us form and we’ll get in touch with you as soon as possible!