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Five Finance Tips for Small Business Brexit Success

With all the uncertainty around Brexit this is a difficult time for small business owners as it’s difficult to make appropriate plans and decisions in the face of such an unsure future.   One way of making sure your business is ready for Brexit is to make sure your finances are in tip top shape so today we’re bringing you five tips you can use to help you and your business cope whatever the outcome of negotiations.

  1. Advance Payments – if you have funds available when purchasing stock or materials, consider asking for a discount for payment in advance.  This may represent a more effective use of your funds than stashing the money in your bank account.
  2. Tax Relief – make sure you claim any relevant tax relief that your business is entitled to.  Any business that has developed a new product, business process or service in the past two years may be eligible to claim research and development (R&D) tax credit entitlements.  If your business owns its own office or commercial premises you should be able to take advantage of capital allowance tax relief to offset the costs of maintaining the property.
  3. Switch Bank – changing your bank can benefit your business if your new bank offers a larger credit facility without personal guarantees.  This can help protect your business as you won’t have to offer assets as securities which could result in freeing up some of your funds so that you can use them to grow your business.
  4. Switch Insurance – as a small business owner you could save more than 30% in tax relief by switching your life cover from personal to corporate cover.  You may also consider investing in key person or stockholder insurance to protect your business should you lose a vital member of staff or a key investor.  Ask an expert for advice on your specific situation so that you can make an informed decision on this.
  5. Outsource Cash Collection – this will help you to avoid having awkward conversations with regular customers which may lead to a strained working relationship.  By handing over responsibility for collecting money owed to your business to a professional debt collection agency you’ll be able to concentrate more of your time and energy on running your business.  If you’re owed money by overseas customers, look for an international collection service with the expertise and experience necessary to deal with overseas debtors. 

These five tips should make it easier for your business to deal with the uncertainty that lies ahead of us right now.  A steady cashflow is vital for business success, so paying attention to your business finances right now is the best way to beat the Brexit blues that many business owners are feeling.