Summer has a habit of sneaking up on businesses. The school holidays, slower customer response times, team members taking annual leave, it can feel like a period to simply get through rather than make the most of. But for business owners who use the summer months wisely, it can be one of the most productive times of the year for taking stock and getting finances in order.
As we celebrate 20 years of NGI Finance, we’ve been thinking about the habits and disciplines that make a real difference to business financial health. Here are some practical challenges worth taking on this summer, not dramatic overhauls, just focused actions that could make a meaningful difference by the time September comes around.
The subscription and overhead audit
When did you last go through every recurring cost in the business? Software subscriptions, insurance policies, supplier contracts, service agreements. They accumulate quietly and tend to auto-renew without scrutiny. Set aside an hour this summer to go through the last two or three months of business bank statements and highlight every outgoing. The challenge is to find at least three costs you can reduce, renegotiate or eliminate entirely. Most business owners who do this exercise are surprised by what they find.
The cash flow forecast challenge
If your business doesn’t have a rolling cash flow forecast, this summer is the time to build one. If you do have one, challenge yourself to extend it (from three months out to six, or from six months to twelve). Understanding what your cash position is likely to look like in advance is one of the single most useful things a business owner can do. It removes surprises, creates confidence when speaking to lenders or investors and helps you make better decisions about timing.
The equipment review
Is there machinery, technology or vehicles in the business that are overdue for replacement or upgrade? Summer, when things may be slightly quieter, is a good time to audit what you have, what’s underperforming and what an upgrade would genuinely do for your efficiency or capacity. Asset finance means you don’t need to fund replacements or additions from cash reserves, so the question isn’t always “can we afford it?” but “what’s the right way to fund it?” The challenge here is to make that list rather than keep putting it off.
The finance arrangements health check
When did you last review whether your current business finance arrangements are still the right fit? Loan terms, interest rates and lender relationships that made sense two or three years ago may no longer be optimal (particularly given how much the lending landscape has shifted). Challenge yourself to review every finance facility in the business this summer and ask honestly, is this still working as hard as it could be? Are there better options available? A conversation with an independent broker will cost nothing and could reveal more than you’d expect
The late payments challenge
Late payment remains one of the biggest drains on SME cash flow in the UK. This summer, challenge yourself to tighten up your credit control processes. Review your payment terms, make sure your invoicing is going out promptly and consistently, follow up on anything overdue. If slow-paying customers are a persistent issue, it may also be worth exploring whether invoice finance could smooth out the peaks and troughs, effectively giving you access to funds tied up in unpaid invoices without waiting for customers to pay.
The growth planning challenge
Perhaps the most important challenge of all is to carve out some dedicated time this summer to think clearly about where the business is going. What does growth look like for you over the next 12 to 24 months? What investment would it require? What would need to change? Many business owners spend so much time working in the business that planning for the future keeps getting pushed back. The challenge is simply to have that conversation with yourself, with your team, or with a finance specialist who can help you map out what’s achievable.
Summer is an ideal window to do the things you never quite get to during the busier months. Even completing two or three of these challenges before September could put the business in a noticeably stronger position heading into the final quarter of the year.
If any of these challenges raise questions about your funding options, we’d love to help. Give us a call on 01993 706403 or email enquiries@ngifinance.co.uk, we’re always happy to have a straightforward conversation about what might work for your business.
