In light of the uncertain economic climate of 2025, it is important for small and medium-sized enterprises (SMEs) to prioritise effective money management.
Recently, SMEs have stressed their concerns over rising taxes and costs, amongst global competition. According to a recent survey from iwoca, 66% of small business owners feel the UK is falling behind amongst other global economies.
Persistent cash flow challenges
Data has shown financial difficulties have been faced by 3 in 5 SMEs. Many grapple with unstable cash flow due to changes in prices.
In addition, inflation has risen from 2.5% to 3%. In response to difficulties associated with availability of cash, many SMEs have sought to consider management tools. This includes technology and individuals offering valuable insights, such as help to predict gaps, and optimisation so that businesses can contend with unexpected changes to the UK economy
April wage rises
The beginning of the new tax year will bring an increase to National Minimum Wage. Particularly, the 18–20-year-old rate will increase 16.3% to £10 in anticipation of adult rates in future being extended to 18-year-olds. However, SMEs may suffer at the cost of increased labour costs and so efficiency measures, such as outsourcing functions, may be implemented to curb impacts on cash flow.
Looking forward in 2025, money management will be crucial for SMEs amid consistent turbulence in the UK economy. Alongside efficiency and optimising money management, many SMEs are also borrowing to ensure financial security.
At AJL Finance, we offer loans to SMEs starting at £5000 to help businesses continue to achieve their goals.
