Read the latest news about alternative business finance.
SME’s affected by the increase to National Living Wage costs could improve their financial situation by sourcing small business funding.
In April, the mandatory wage for employees over 25 rose to £7.50 per hour, a figure that is expected to rise again to £8.75 by 2020.
A new report found that 64% of businesses affected by the NLW have had to cut profits in order to pay the higher wages.
The rises to the living wage is proving damaging to the independent businesses affected.
39% have had to increase their prices to afford the new wage costs, while 24% have cancelled or cut down investment plans. A fifth of those affected have had to decrease staff numbers, or have reduced their staff’s hours.
Sectors facing the most problems are those with lower wages, such as retail, hospitality and accommodation. Margins tend to be tight for these businesses, so cutting profits is damaging their growth.
Small business funding, such as a merchant cash advance, can help these small businesses to improve their financial situation.
Cash advances are a simple and flexible small business funding option. If you currently take card payments, you can access between £500 and £300,000 in a lump sum.
The repayment process is much simpler than a business loan. Each day, a small percentage of your card turnover is automatically deducted as part of your repayment, meaning your repayments move up and down in line with your turnover. There’s no large fixed monthly repayment to cover, and no penalties for paying your cash advance back early.
If your business is feeling the pinch due to the National Living Wage increase, find out how a cash advance from Quick Capital could help. Talk to one of our friendly advisors, and find out how much you could raise.