Rising Energy Costs Cause 1 in 4 Small Businesses to Fear Closure

According to YouGov research (commissioned by Meta and published in an article by SmallBusiness.co.uk), rising energy costs are causing just over a quarter (27%) of small businesses to fear closure. YouGov's research also shows that under half (42%) of small businesses are addressing this issue as a top priority.

At BusinessComparison, we want to help small businesses grow. So in this article, we'll cover some of the steps you can take to make sure that your small business is among those addressing rising energy costs as a top priority.

Reduce Your Energy Consumption

One of the more obvious steps your business can take to tackle rising energy bills is to reduce your energy consumption. While you may be able to find better energy rates, reducing your energy consumption will have a positive impact on your energy bills. As an added benefit, by reducing your energy consumption, you'll also demonstrate that your business is being environmentally aware.

Some of the simple steps you can take to reduce your energy consumption include the following:

• Fully power off equipment when not in use

• Invest in more energy-efficient equipment

• Use eco modes where available

• Only turn on lights when they're needed

• Be smarter about when you heat your workplace

You can read about these tips and more in our top 10 business energy saving tips article.

Maximise Your Energy Bill Relief Scheme Discount

The Energy Bill Relief Scheme came into effect on 1st October 2022 and runs to 31st March 2023. It forms part of the UK Government's efforts to tackle ever-increasing energy costs by providing eligible businesses with a discount on their energy bill.

It's important to be aware that if you're out of contract or on a variable rate business energy plan, you may be subject to a maximum discount. This could leave you paying more for your energy bill than if you were on a fixed price business energy contract, so it's worth comparing contracts to see if your business could be better off.

Get a Better Business Energy Rate

The old adage of "if it ain't broke don't fix it" isn't always best for business. It can be as detrimental as another common phrase; "we've always done it that way". With energy prices rising, you might be missing out on substantial savings by not comparing business energy rates and switching.

It only takes a few minutes to compare business energy rates at BusinessComparison, and best of all, our comparison service is entirely free. So why not find out if you could save your business money on your energy bills?

Improve Your Cash Flow

While reducing your energy consumption or finding a great new business energy contract can be exceptionally beneficial, the reality is that high business energy prices might be here to stay. Subsequently, this additional overhead may become the standard for your business.

If increased energy costs are having a negative impact on your cash flow, you need to act quickly! Assessing ways to cut costs and increase your business income is imperative to improving your cash flow. You may also want to consider how financial products can help to improve your cash flow, such as the following:

Invoice Financing

Invoice financing (also known as debt factoring) allows your business to get paid cash for unpaid invoices. This can be exceptionally useful for improving your cash flow, particularly if you have long payment terms on your invoices, as you don't have to wait for your customers to pay your invoices.

Simply sell your unpaid invoices to an invoice financing company, and they'll pay you your unpaid invoice amount minus a fee, and obtain payment from your customer. You can find out more about invoice financing and compare providers by clicking the link below.

Business Loans

If you need a cash injection to grow your business, putting you in a better position to cover your outgoings over the short and long term, a business loan may be ideal.

We compare business loan rates from a range of providers, allowing you to easily choose the best loan offer for your business. You can find out more about business loans and compare rates and lenders by clicking the link below.

Saving your Business Time and Money

At BusinessComparison, we specialise in helping businesses of all sizes find the best products and deals to help them grow. From business energy to loans, broadband everything in between; our goal is to save your business time and money.