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Another government – another chance to help small firms?

Leaving aside comment on the turmoil at No.10, the latest collapse of the Tory government, following the reversal of a swathe of economic policies, has created yet more uncertainty for small firms and raised yet more questions about surviving into 2023.

What do latest policy U-turns means for small businesses?

The small business sector has largely panned the emergency statement from Jeremy Hunt, which has been accused of acute short termism. The decisions to scale back support for businesses on energy costs, to scrap the planned cuts in basic income tax and dividend tax rates, and to cancel the repeal of the IR35 off-payroll tax rules have been roundly criticised.

While the move to reverse the National Insurance rise remains in place, for the time being at least, it feels somewhat underwhelming given what has been lost to Tory party infighting and incompetence.

Of course, the picture might change drastically again under the new Tory government. It will contain a Chancellor and policies may or may not change. Then, of course, there is the question of how long the new government will stay in power.

What this means for small businesses is that it is incredibly difficult to make plans and investment decisions. This is an obvious obstacle to stability and growth. Firms need a clearer view ahead, preferably one that involves greater security with regard to energy costs support and National Insurance rates. Whether they get it remains to be seen.

Safeguarding cashflow and how alternative finance can help

The uncertainty caused by the chopping and changing at Downing Street is making life very difficult for small firms, which are already under extreme pressure. This underlines the need for these businesses to have the right planning in place and at times like these, ensuring access to capital is critical. This is where the services of alternative lenders can help.

In the wake of prolonged caution from traditional lenders, which is an issue that has returned during the pandemic and amid challenging market conditions in 2022, services such as invoice finance, asset finance and peer-to-peer lending are proving a vital source of capital for small businesses.

These facilities, which offer a more easily accessible and personalised approach to lending, are helping small businesses survive and target recovery, stability and growth. Notably, alternative lending has played a prominent role in the government’s headline emergency support schemes, including the Recovery Loan Scheme. This profile has helped cement the reputation of alternative finance in the business sector.

Planning ahead and small firm finance options

These are clearly extraordinary times and while the country prepares for the next instalment of the Tory political saga, small firms are faced with some very tough challenges, including accessing capital and safeguarding cashflow. As businesses steel themselves for more uncertainty, it is vital that they are aware of all the finance options available to them, including alternative finance facilities.

To find out more about A&T Business Associates services, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.

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