Rising employment costs are squeezing businesses across the UK. National Insurance changes and increases to the National Living Wage are hitting payroll hard – and for many business owners, it’s becoming a real challenge to keep margins healthy.
First, understand what the data is showing
- Hiring is slowing and redundancies are rising, particularly in large private firms and retail.
- Young workers are at risk, with many firms pausing or reducing under-21 recruitment due to increased costs.
- More businesses are in critical distress, and rising payroll costs are a key factor.
If you’re feeling the pressure, you’re not alone.
Then, consider how to fund the gap
Short-term funding can give you the breathing space to make strategic changes without making rash decisions. Here are some options:
• Working capital loans: Quick access to cover day-to-day expenses. Ideal if you need cash fast.
• Invoice finance: Free up funds tied in unpaid invoices. Choose to fund all or just a few.
• Asset-backed lending: Use your equipment, property, or other assets to unlock capital.
• Pre-approved funding platforms: Tools like Capitalise connect securely to your bank and show options you qualify for within minutes.
Funding isn’t the full solution
Extra cash helps in the short term, but it’s also worth exploring:
• Pricing strategy reviews
• Operational efficiencies
• Automation to offset wage growth
By acting early, you put yourself in a stronger position. Don’t let short-term pressure turn into long-term pain.
If you’re unsure what the right funding route is for your business, get in touch. We can help you make confident, informed decisions that suit your current position and future goals.
Email prosper@sbca.co.uk or call 01772 204102