Updated: Jan 12
Getting ready for 2022 means making sure your business is properly funded, strongly capitalised and ready to finance your plans for the new year.
As Master Funding Advisors with Capitalise, Purple Accounts makes it easier than ever for you to apply for fast and flexible funding up to a maximum of £100k.
So, what could your business do with £100k in additional external funding?
With many small businesses showing signs of cautious optimism as we enter 2022, we’ve suggested five key ways that you could put that money to good use – and how this extra capital could be the driver for bigger and better things for you and your business over the coming year.
1. Take on more staff to support their growth plans
People are any SMEs most important asset. So, having enough core talent and people power in the business is a crucial element of any 2022 growth plan.
Taking on additional staff obviously increases a business’ capacity. But it also brings new ideas, experience and operational processes into the company. At the growth stage, this kind of talent expansion can be critical, so £100k could be a great starting point for upping the company’s headcount. This extra cash can cover the extra payroll costs for two senior managers, four new junior sales people or even a new director to sit on the board and bring some extra experience and dynamism to the client’s growth strategy.
2. Invest in new equipment to help them scale up
If you have plans to scale up your operations in 2022, it’s likely that you'll need to upgrade equipment, vehicles, plant and technology to achieve this.
For industries that rely heavily on expensive machinery and equipment – sectors like construction, manufacturing, engineering or food production, for example – buying these new assets can put significant pressure on their cash reserves. With £100k available to the business on highly flexible and competitive terms, a food retail business could lease a fleet of new delivery vans, expand production facilities or invest in a new software system.
The key lies in understanding your growth objectives, identifying the assets that will allow you to achieve these goals, and helping you source funding.
3. Pay off debt and improve their cash flow
Having numerous outstanding debts and liabilities on the balance sheet is bad for the financial health of your small business. With an Instant Offer loan, you have the option to bring a lump sum into the business and to use this £100k to pay-off and resolve these disparate debts.
Where the business has multiple loans, overdrafts, unpaid bills and other repayments, this puts unnecessary pressure on cash flow – at a time when many SMEs are looking to stabilise recovery and extend their growth for 2022.
Using a Funding Circle loan to pay off these debts, or refinance existing liabilities, helps to reduce the debt level and combine these liabilities into one more manageable loan.
With one loan to pay off, we can help you by working out the most efficient financing options and repayment schedules. This makes monthly cash outflows more predictable, reduces the costs of repayments and frees up more cash to reinvest in the business.
4. Make green/sustainability improvements to the company
Building a greener future should be an important element of any conscientious SME’s agenda for 2022 and beyond. But becoming more green and sustainable can be a costly enterprise.
Climate change and global warming are a huge risk to the planet, and something where the world needs to act decisively to reduce the emissions, waste and carbon footprint of the planet’s businesses. But many of the actions needed to achieve ‘Net Zero’ require significant change and investment from the company.
SMEs could consider:
Replacing internal combustion engine (ICE) fleet with electric vehicles (EVs) to reduce their use of fossil fuels and become more sustainable.
Switching production and packaging to alternative non-plastic, biodegradable options and moving away from using plastic in the business.
Adding solar panels, wind turbines, or hydro-electric technology to premises, cutting reliance on the power grid and reducing utility bills.
Investing in tree-planting, rewilding projects or green social enterprises as part of the environmental, social and governance (ESG) policy. This investment helps to bring the company’s values and ecological credentials to life.
5. Enhance staff benefits and perks to boost employee motivation
Hiring more staff is one part of the growth strategy, but keeping the high-quality, valued staff that you already have is just as important. No business strategy can work if you don't have the talent, knowledge and employee buy-in to achieve your key goals for 2022.
A great way to retain core talent is to make the company a more inviting and attractive place to work and staff perks, rewards and benefits are central to this. In a market where there’s currently a labour shortage, you absolutely need to hold on to the staff you have – and also attract new talent looking for the best possible working environment.
Speak to David - Master Funding Advisor at Purple Accounts about funding for your small business. No obligation, just straightforward help and advice.
or check out our page for more information.