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A good credit score is essential if you want to secure the most competitive business loan interest rate. But it’s not something that happens overnight; solid credit takes time to build and it’s never too early to start, even if you’re not yet in the market for business financing! Here’s how you can nurture your business’s financial profile for now and the future:

1. Pay Your Bills On Time

It may sound simple but one of the fundamental metrics used to calculate credit score is payment history. Bills that are paid promptly and in full help establish positive credit, while late and missed payments will lower your credit score. Using direct debits to keep on top of your regular expenses can help minimise the workload associated with this, but if you choose this option, you need to ensure there is always enough cash in your account to cover scheduled debits. A bounced payment will negatively affect credit score.

2. Minimise Debt Levels

The amount of debt your business holds will also affect its credit score. The technical term for this is credit utilisation ratio – the amount of debt compared to your business’s credit limit. High debt levels means your business already has plenty of debt obligations, and lenders are less likely to think it can handle more. Therefore paying off existing debts, before pursuing a new business loan, will improve your score. Similarly, closing inactive accounts can help with financing eligibility. 

3. Let Your Credit History Grow

One of the unavoidable facts about credit is that it takes time to establish. A new business is considered inherently riskier than a long-standing one; lenders like to see a pattern of good financial behaviour over an extended period of time. So one small way to improve your business’s credit score is to simply give it time. From start-up, create good financial habits (such as paying all bills on time). If there have been credit issues in the past, prioritise steps that will improve it as quickly as possible.

4. Limit New Credit Applications

When you apply for a new credit product, such as a business loan, the lender you apply to will perform a credit check in order to assess your application. This credit check acts as an indicator you’re thinking of increasing your debt levels, and so has a (small) negative impact on your business’s credit score. This is why it’s important to limit the number of new credit applications you make at any one time. Do your research before applying for a business loan, so that you’re only making one application.

5. Mix Up Your Types of Credit

Another factor in credit score is whether a business is able to successfully manage multiple different types of credit. A business that shows a positive history in managing traditional loans, credit cards, asset-based loans, and other types of loan, is considered a safer bet than a business that has a history of only managing one type of loan. So to improve your business’s credit score, try to have a mixture of different credit types – while still keeping your overall debt levels as low as possible.

6. Keep Your Accounts in Good Order

Well-kept accounts that are filed correctly and on time is a sign of financial prudence, and can help a business appear more favourable to lenders. This is not just about what’s in the accounts, it’s about how you as a business owner are taking responsibility for following proper financial administrative steps, boosting transparency and credibility. So don’t let paperwork take a back seat to other operational matters. And make sure that any business changes (such as registered office address, directors details, and so on) are promptly updated with HMRC and Companies House. 

7. Check Your Credit Report for Errors

Your business’s credit score is kept track of by several major independent organisations – but they’re not infallible. Mistakes can and do occur, and these can negatively impact your business. So it’s worthwhile scheduling a regular check of your business credit report, so you can identify any errors and rectify them as quickly as possible. 

8. Check Who You Work With

Not all risks to your business’s credit score come from within; sometimes you can be let down by suppliers or customers, impacting your cash flow and potentially harming your credit. So consider performing credit checks on those you regularly do business with and who have the potential to impact your bottom line; just because you’re being financially responsible, doesn’t mean they are.

9. Maintain a Healthy Cash Flow

The ability of a borrower to repay their loan is the fundamental concern for a lender, and one way to alleviate this concern is to maintain a healthy cash flow. Plenty of cash coming in, regularly, shows your business is likely to continue to have the funds to make its loan repayments in the future.

10. Don’t Ignore Your Personal Credit Profile

Lastly, don’t overlook the personal credit histories of all business owners. This is especially true for newer businesses, small businesses and sole traders, but any business may have its owners’ credit histories checked when they apply for a business loan. Bad credit or a significant credit event in a business owner’s past can impact their business’s ability to secure financing.

Not all types of business financing rely on credit score; if your business needs funding that’s based on cash flow rather than credit, talk to Swiftfund to find out how a merchant cash advance could work for you.

Businesses need to understand all of their different expenses, and the costs associated with loans are no different. It’s vital you fully understand all of them, especially interest, before making a financial commitment to a business loan. Here’s what you need to know:

Different Types of Business Loan Costs

The majority of the cost of any business loan comes in the form of interest. Interest is how lenders make a profit; for every pound they lend out, they receive an extra percentage back. This extra percentage is known as the interest rate, and depends on a number of factors.

Interest costs are not the only ones you need to know about though; business loans can also charge a variety of loan fees. These fees can sometimes add up to thousands of pounds, and differ a lot between lenders and types of business financing.

Understanding Interest Rates

The amount of money a business borrows from a lender is known as the principal. Interest is charged on the principal; for example, if you borrow £1,000 and are charged 6% interest per year, then after one year, you would need to have repaid the original £1,000 plus 6% of £1,000, which is £60. So the total repayment amount totals £1,060.

This is how interest works in a very basic way, but the majority of loans require a bit more thought, because interest accrues. Think of it this way: if we take the above example, but instead of repaying the £1,000 loan over one year, you repay it over ten years. You are charged 6% interest per year that you have the loan, but the interest charge itself gathers interest. So in year two, you’re paying interest on £1,060 – which is £63.60. So the total repayment amount becomes £1,060 + £63.60 = £1,123.60. In year three, you’re paying interest on £1,123.60, which is £67.42. And so on. This is why longer term loans cost more in interest than shorter term loans with the same interest rate.

The variables that affect the overall cost of a business loan are therefore: the principal, the interest rate, and the loan term. With these three numbers, you can calculate the overall cost of a loan. If you know your repayment frequency, you can also calculate your individual loan repayment costs. There are dozens of free loan calculators available online to help you do just this. 

Factors That Affect Business Loan Interest Rates

The next big question is: what interest rate will you be charged for a business loan? There are a number of factors that affect this:

1. The Bank of England base rate (which is reviewed eight times per year and can go up or down depending on a range of national and international economic factors)
2. The state of the loans market and competition/risk appetite among lenders
3. Each individual lender’s profit margin (which is why different lenders often charge the same borrower different rates)
4. The type of business loan (for example, secured loans are considered less risky by lenders, and so usually have lower interest rates than unsecured loans)
5. The length of the loan term (generally, longer term loans have lower interest rates than shorter term loans, but because of cumulative interest, this does not necessarily mean they are cheaper overall)
6. Borrower-specific characteristics, including:
   • Business credit score
   • Business age
   • Business income
   • Business assets
   • Industry the business operates in

As you can see, some of the factors that affect interest rates are very general, while others are specific to each individual business. Businesses with preferable characteristics (e.g. good credit, high income, etc.) are considered safer to lend to, and so are able to access lower interest rates than businesses that are considered riskier. This is another reason why shopping around for the best deal on a business loan can make such a difference to your overall cost – different lenders use different metrics to assess potential borrowers’ riskiness.

Fixed Rates vs. Variable Rates

Lastly, we need to mention that not all rates work in the same way. There are two major categories of rates: fixed rates, and variable rates. Fixed rates stay the same over the term of the loan (or, sometimes, for very long-term loans, they are fixed for a set number of years before changing). Variable rates do not; they can fluctuate depending on the market. This makes variable rates less predictable and less stable, but potentially lower than fixed rates (depending on economic conditions). 

All rates, whether fixed or variable, should be considered and compared using the same metric: annual percentage rate, or APR. The APR is the average rate over a year. Because some loan products advertise low introductory rates, changing rates, or have hidden fees and extra costs, it’s not always possible to compare them without a standardised metric. The APR is this metric; it includes all interest and standard fees and makes it into an annual figure, allowing you to appreciate a loan’s true cost and how different loans stack up against each other.

Understanding Loan Fees

The APR of a loan will include some loan fees, but not all. And because some loans charge fees and others do not, it’s worth understanding how this aspect of loan costs works. Any business loan can in theory charge a number of different fees, including:

• Application fees
• Loan origination fees
• Processing fees
• Annual fees
• Administration fees
• Early repayment fees
• Late payment fees
• Closing fees

As fees are so variable between lenders and loan types, it’s very important you understand which (if any) you will be charged when applying for, accepting, managing and closing your business loan. The APR of a loan will include some of the fees named above (the standard fees applicable to everyone), but not all, as repayment fees and penalties can vary from borrower to borrower. This is why you will sometimes see a business loan’s rate stated as an AER (annual equivalent rate). This is the annual compounded rate of interest of a loan, without any fees included at all. Be extra sure when comparing loan costs whether you’re looking at AERs or APRs, and what extra costs you might be liable for.

If you’re considering business financing but want to avoid all of the worries around interest and fees, we can help. Talk to Swiftfund today to understand how a merchant cash advance simplifies the borrowing process.

You don’t need to be a paperwork whiz to get a business loan in the UK; all you need is to comprehend the process and follow a few simple steps:

In order for a loan to actually help your business with what it needs, you have to know what those needs are. You can do this by answering the following questions:

1. How much money does your business need to borrow?
2. What is the money for?
3. How quickly is the money needed?

With this information, you can determine the size and type of business financing that might work for your business, as well as narrow down the field of possible lenders.

Step 2: Understand Your Financial Position

Hand-in-hand with understanding your business’s needs is understanding your business’s financing eligibility. It’s all very well asking a lender for a million pounds, but if you can’t afford repayments, the lender won’t approve the loan. And even trying to make those repayments could bankrupt you. So it’s vital you acknowledge what’s possible given your circumstances. You need to know:

• Your business’s credit score
• The length of its operating history
• Its cash flow
• The details of any business assets that could be used as collateral
• Existing business debts

This information will allow you – and any lender – to assess how much your business can realistically afford to repay, and the potential risk (from a lender’s perspective) of giving your business a loan. Generally speaking, more established businesses, businesses with strong cash flow, few existing debts, assets that can be used as collateral, and businesses with good credit scores will find that they can borrow more, from more lenders, and at a lower cost than those without these characteristics.

Step 3: Consider Your Borrowing Options

Now comes the hard part: given what you know about your business’s needs and financial situation from steps one and two, you must narrow down all of the possible business financing options that exist in the UK to just those that make sense for you. That means finding financing that:

• Provides the amount of money your business needs to borrow
• In the timeframe your business needs it in
• To businesses with your financial profile
• With affordable repayments that work for your business

Many businesses find that searching by eligibility criteria (i.e. what credit score, income etc. a business needs to get a loan) is one of the quickest ways to determine lenders and loan products that might work for them. For example, if your business has bad credit, there is very little point in considering term loans from high street banks, as these almost always have a minimum credit score requirement. 

But eligibility should not be your only concern. A loan that you can get approval for, but that doesn’t help your business with what it needs, is useless to you. That’s why considering loan amount, repayment type, repayment schedule, application processing times, and loan costs all matter too. And remember that every lender has different terms, so shopping around to find the best option given your constraints is essential.

Step 4: Gather Your Paperwork

Once you have a clear idea of which lender you want to apply to, you need to get your paperwork ready. Not all lenders ask for the same set of documents, but many have similarities, so it’s worth digging out:

• Business legal documents, such as articles of incorporation
• Latest business financial statements, including cash flow statement, balance sheet and income statement (if you don’t have up-to-date versions of these, you will likely need to get them)
• Business bank statements for at least three months
• Business tax returns for the past two years
• Proof of ownership of assets (if pursuing a secured loan)
• Proof of address and ID for the business owner(s)
• Personal tax returns for the business owner(s)
• Your business plan

Step 5: Complete an Application

Now you’re ready to actually apply for a business loan. Most lenders have simple, secure online application systems that allow you to upload your documents and submit an application entirely at your own convenience. However, in-person applications are possible too, if the lender you choose has physical locations nearby. 

In either case, you need to make sure you have all of the documentation requested by your chosen lender, and you need to carefully complete the application form, truthfully and in full. Once you have done this, check it thoroughly, and submit it for consideration. Avoiding any mistakes or missing information in your application will prevent unnecessary processing delays.

Once received, most lenders will send an acknowledgement of receipt; it can then take anything from a day to several weeks to receive a reply (depending on the lender and their processes). And if your loan application is denied, don’t despair. Your business may well still be able to get a loan from another lender; it’s worth asking why your application was rejected, so you can better choose where to apply next time, thus increasing your chances of approval.
If you need more help understanding your business’s borrowing options, contact us. And read our blog for a range of useful information for UK businesses.

Business owners can quickly find themselves overwhelmed by information as they begin their borrowing journey, making it hard to know what’s really important or how to make the best decision for their business. So we at Swiftfund have put together the ultimate guide to British business loans, to help you get started on the right foot:

The Purpose of Business Loans

The fundamental purpose of a business loan is to help a business afford something it would not otherwise be able to. This could be any business-related expense, including:

• Working capital
• Inventory costs
• Equipment purchase, repair or upgrade
• Property-related costs
• Debt consolidation
• Marketing and advertising costs
• Business start-up or business purchase costs
• Employee-related costs (e.g. wages, training, etc.)
• Business expansion

The Structure of a Business Loan

All forms of business borrowing have the same basic structure:

1. A business applies for financing from a lender
2. The lender either approves or rejects the application
3. If the application is approved, funds are released
4. The borrower then repays the borrowed funds, plus any interest and/or fees, according to a pre-agreed repayment contract

As there can be enormous variations in borrowing amounts, costs, repayment methods and conditions, it’s important that the business doing the borrowing fully understands the terms of any specific loan before agreeing to it. 

Types of Business Loan

Most people use the phrase ‘business loan’ to refer to any type of business financing, but that can be a little misleading. Technically, ‘business loan’ actually refers to one specific type of borrowing: a term loan. This is the most common form of business borrowing in the UK, and it involves fixed repayments over a set period of time. But, despite their popularity, term loans are not necessarily the best solution for every business. And luckily, there’s a lot of other types of business financing to choose from, including:

• Business lines of credit
• Merchant cash advances
• Invoice factoring loans
• Equipment loans
• Business credit cards
• Government loans

Each type of business financing has its own pros and cons, so in order to choose the right one for your business, you need to understand: 1) your business’s financial needs and situation, and 2) your business’s priorities. 

Lenders of Business Loans

You don’t have to go to a high street bank if you need cash for your business; the market is buzzing with business lenders, including:

• Online lenders
• Traditional banks
• Challenger banks
• Community development financial institutions
• Local or national government
• Private lenders

As you might expect, each lender has their own terms and costs, and not every lender offers every type of business loan. Start by understanding what type of financing your business needs, and then you can search for the most competitive lender in that field.

Qualifying for a Business Loan

A common misconception is that UK business loans are hard to get, but this just isn’t the case. While some types of financing, and some lenders, can have strict eligibility criteria, there are also many that are flexible. As a business owner, you need to understand your business’s financial profile, so you can determine where and for what your business will qualify.

Crucially, this means you need to know your business’s:

• Credit score
• Trading history
• Assets
• Existing debts
• Size and turnover

These characteristics will determine which lenders are most likely to approve you, what types of business financing you qualify for, and the terms of your financing. And while not every lender looks at all of these characteristics, all will consider at least some of them.

Applying for a Business Loan

You can apply for a business loan in-person, if the lender you choose has physical branches, or online. Many opt for online applications as they are convenient and secure, and provide step-by-step instructions on how to complete the application. But, before you can start your application, you need to gather together some paperwork. Different lenders require different items, but in general you can expect to need:

• Recent business financial statements (e.g. balance sheet, cash flow statement, etc.)
• Business bank statements
• Business legal documents (e.g. articles of incorporation, business license, etc.)

You may also need to provide:

• Business plan
• Personal and/or business tax records
• Statements regarding assets/debts

Choosing a Business Loan

The variety in types of business financing means that almost anything is possible. Borrowing amounts can be as low as a few hundreds pounds, to over £1 million; repayment terms can be a few months to eight years; and interest rates can be just a couple of percent, to over 50%. Selecting a lender and financing type that align with your business needs is therefore critical. To do this, consider:

1. The money’s intended purpose
2. Your business’s current financial situation (credit score, income level, length of time in business, and debt levels)
3. Whether your business has any assets that can be used as collateral (as secured loans often have better terms than unsecured loans)
4. Your business’s repayment ability; fixed repayments and flexible repayments are both possible, so understanding your cash flow and budget is essential
5. Loan costs, including interest and fees, and other loan terms

If you need more help understanding your business’s borrowing options, contact us. And read our blog to gain more insights into running a successful business in the UK.

Every year, the Christmas rush begins earlier than before. It’s almost like the festive lights and decorations go up the day after Halloween. If you own a retail business, we don’t have to tell you this. You’ll know the stress and success that comes with the festive season.

But the Christmas rush doesn’t have to be something you dread. In fact, it’s a very profitable time of year for most businesses if you know how to handle it. We’ve got some tips to ensure your business can beat the Christmas rush and enjoy the festivities.

Think Back to Last Christmas

If you’re an experienced business, you should know roughly what to expect when it comes to the Christmas rush. Hopefully, you’ll have some invaluable information that will help you to prepare for the next one. For example, last year’s stock records can point you in the right direction when it comes to customer demand. Perhaps there are certain products that flew off the shelves quicker than others. If that product is popular, you can ensure this doesn’t happen again.

What about your team; were there enough staff members to deal with the Christmas rush? If you fell behind with offers or noticed a delay in your services, now is the time to do something about it. You can add seasonal staff to deal with the rush so you don’t lose sales or damage your reputation.

Have Lots of Presents on the Shelves

As a business, you’ve probably received the warning that it can be risky using too much of your capital for stock. But at this time of year, not having enough stock can damage your sales and affect your business. Using the information from last year, you can go through all of your stock before Christmas to see the demand. Look at the latest buying trends this year too to understand what customers may be looking for. This way, you can invest in stock that you can sell.

Consider More Elves

Let’s be honest; Christmas shopping can be very stressful. There’s the panic of last-minute buying and not finding the perfect present for a loved one. So, this means that you’ll probably have to deal with some grumpy customers at some point. But something that will make this even worse is not having enough staff. At this time of year, customers are already in a bad mood and won’t stand around forever to be served. If they have a bad experience, this can have a negative impact on your sales and business. Considering seasonal staff to step in can be an investment that pays for itself.

Invest in a Holiday Marketing Campaign

‘Tis the season to attract more customers. You know everyone is going to be doing their Christmas shopping. So, why not point them towards your business? A successful marketing campaign is going to see a boost in customers over the festive period. There are several techniques you can use. For example, utilise the reach of social media and post giveaways, competitions and Christmas adverts on Facebook, Instagram and Twitter. This is going to boost your profile and attract new and loyal customers.

Don’t forget that you’ve got a database full of customer’s details. In particular, we’re talking about email addresses. You can create a Christmas newsletter to promote special discounts you may be running or popular products that are trending this year.

Reign in the Festive Cheer

We know it can be tempting to jump on the bandwagon and start your Christmas promotions early. But not everybody likes this. In fact, it can turn customers away from your brand. While it’s good to plan in advance, don’t start your campaigning too early. You want to make your customers feel like they’re getting a good deal when the Christmas rush starts. If you’re running the same promotions from September, they won’t have the same appeal. We’d say that November is a good time to prepare for Christmas. By the end of the month, you’ll see an increase in customers wanting to start their shopping.

Remember Your Other Customers

Christmas is all about sharing the love. So, don’t forget to be inclusive and remember those customers that choose not to celebrate the holiday. It’s easy to get caught up in the bright lights and carols but remember to accommodate customers of other faiths during this time. Take note of your local population and adjust your seasonal approach accordingly.

Stand Out with Christmas Wrapping

If there’s one thing everyone hates about Christmas it’s definitely wrapping all of those presents under the tree! It’s time-consuming and tedious. Of course, this offers you some ground to exploit. Why not start offering gift-wrapping services? Just adding on a little extra with every purchase can offer a surprisingly good margin on each sale. Plus, you’ll have happy customers that are glad they don’t have to do it at home! A gift-wrapping service can also make you stand out from the competition.

Think About Cash Flow

The festive season does require businesses to outlay more money on campaigns, staff and stock. Do you need a cash injection ahead of the Christmas rush? It may be best to seek a business loan to help out with the month ahead so that you can invest in your brand and see an increase in sales.

Small business owners face more challenges that larger corporations during a bad economic climate. In fact, the unpredictability can be worrying and this means it’s essential to prepare. This can ensure you don’t run into problems with cash flow. Your revenue is everything and while having a profitable month is fantastic, it’s not going to ensure you make it through an economic downturn. After all, small businesses still have staff to pay, rental agreements and other commitments. Let’s take a look at how problems can happen and how you can protect your business.

Causes of Poor Cash Flow

One of the main reasons for poor cash flow is simply a decrease in revenue. Every business has its ups and downs; some slower months may have been predicted, as well as some unexpected twists in the road. Either way, it can affect how much cash is available. In addition, expenses you weren’t expecting can affect the books. For example, if there’s flooding or a piece of equipment breaks, you’ve got no choice but to carry out the repairs.

Late payments from clients can have a negative effect. If they default on their debt, this means fewer funds for you when you need it. In turn, it can affect you paying your bills too. While offering credit is a good way to build sales, it does come with a risk and late payment is a common problem.

Watch out that you don’t overtrade. If you’re trying to expand your business before you’re ready, this can affect cash flow. What happens is that you increase resources and payments before you’ve received cash from new customers. You may be hit by a seasonal business trend, which leaves you in a bad position. The last thing you want to do is then borrow money and can’t pay it off.

You may experience poor cash flow if your overheads are too high. Of course, you need to pay things like and utility bills to keep your business running. But if expenses start to get too much without you realising, this will mean you make less profit. It’s best to review all your expenses regularly to avoid this from happening. Often, there are cheaper options you can swap to.

Ways to Protect Your Business

Season changes are something that affects every business. This means that certain times of the year or even your location can disrupt the cash flow. While these factors are often out of your control, making sure that you maintain a healthy business during these spells can make sure that you don’t have to close your doors prematurely.

First, pinpoint and recognise where the seasonal shifts are for your business. It’s important to be honest and work out the best times for profit and when the slower months are. Looking at your records can help you decide, but if you don’t have any, you can always examine general statistics from your industry. Businesses that are similar to yours in terms of size and location will help you figure it out. It’s best to start keeping records if you can.

You’ll be aware of what your fixed expenses are. But it’s also necessary to examine the variable costs of your business. It’s easy to overlook them, yet it can be these figures that impact on your cash flow. So, take the time to examine any fluctuating costs such as insurance premiums and tax payments.

There are going to be times when your business incurs an unexpected expense. Perhaps emergency repairs are needed or your services have had a bad month. Instead of worrying about it, you can be more productive by considering alternative funding to combat the issue. For example, you can consider using a short-term business loan to help through the difficult time. This cash injection can be used for expenses you have to pay in the meantime.

Staying on top of finances is always advised. This means creating a calendar and documenting every month. This is going to give you an insight into your business’s cash flow so that you can keep up. It’ll allow you to interpret when cash shortages may arise and when you can expect higher cash flow. Remember that ups and downs in business are normal. It’s best to be honest and accurate when it comes to finances so that you can make informed decisions for your business.

Become an Eco-Friendly and Sustainable Small Business

Over the last few years, everybody has been trying to understand how their actions impact the environment. We all want to help save the planet. In particular, business owners are conscious that consumers care about going green when it comes to products and services. In fact, a lot of consumer purchase decisions are now based on the environmental ethos of businesses and their commitment to going green. Therefore, sustainability has become an important aspect of business for companies around the world.

So, is it time for your business to begin its eco-friendly journey? Let’s take a look at how you can promote sustainability in today’s eco-conscious world.

It Starts with Planning

Without a plan, you can easily get lost when you’re going green with your business. It can be a big transformation and preparation will be the key to success. This means sitting around a table and creating a strategy. This is going to allow you to track your goals and whether you are achieving them. It’s important to be realistic with your targets at this stage. This means starting small and working your way up.

It’s always important to know the cost of the actions you plan to follow. Share this with your team and make it a group effort. This is going to make sustainable actions achievable in the long term. This may take some encouragement. Perhaps you can even try incentives such as bonuses or extra holiday time for cycling to work or recycling.

Utilise Marketing

You’re making big steps towards going green and transforming your business; make sure your customers know about it. Of course, your employees will begin to learn about the strategy you have in place, but you’ll need to market this progress to your customers to feel the real benefits of your work.

Don’t forget about your competitors. Consumers have so many choices when it comes to buying that they now look into the brand they’re purchasing from. It’s not all about the price or quality of the item anymore; they want to know more about you. In fact, studies show that customers are now willing to pay more if they believe the company is sustainable and making positive moves to help the environment and social causes. So, make sure that you boast about your eco-friendly efforts to promote your business.

Do Not Use Standby

There are easy changes you can make around your business that can make a difference. For example, do you leave appliances or electronics on standby? According to statistics, £227m is wasted every year in UK households because people are not switching off their appliances. You can easily reduce your carbon footprint by making a conscious effort to switch off lights and heating. You’ll definitely notice a reduction in your bills. You can easily retain heat by closing doors and making sure windows are closed, as well as adjusting your thermostat. Did you know that lowering your thermostat by 1 Degree Celsius can actually mean you save £60 a year on heating?

We know that it can be hard during the colder months of the year to switch off your heating. But you can still make a difference to the environment by using timers. This is something you can also do with your lighting and making it only turn on with monitor detection sensors. With some more investment, you can use smart energy apps like Hive and Nest. This allows you to monitor your energy usage.

Switching Energy Sources

It’s time to consider renewable energy sources for your business. This is the transition that a lot of small businesses are going through right now in order to help the environment and save on energy. This includes using solar and wind power to generate electricity and heating. For example, you can use solar panels to generate electricity or collect rainwater to use in your plumbing system. If you’re not quite ready to take the plunge straight away, you can start smaller. This includes changing your lights. You can save money and lower your carbon footprint by switching to energy-efficient LEDs.

Suppliers and Packaging Revisions

Examining your core business areas will reveal where you can make sustainability changes and make a positive impact on the environment. For example, take a look at your existing suppliers. Are their practices sustainable? Do they use any toxic substances that are harmful? Packaging is another aspect you can look at. Examine whether there are ways you can cut down on packaging or reuse resources to help the environment. Studies find that more consumers are now looking for products that use eco-friendly packaging. In addition, they’re willing to spend more cash on sustainable goods.

Reuse and Recycling Practices

Ever heard of the phrase, reduce, reuse and recycle? This is something you can do in your small business to help the planet. Instead of just thinking about how your products are made, you should also remember to think about what happens after they’ve been enjoyed. For example, can it be reused or recycled in the future?

Already, there are stores across the country that run eco-friendly initiatives that are popular with customers. This includes vouchers for recycling clothing. Incentivising eco-friendly efforts with your customers can build rapport and is beneficial to the environment at the same time.

There are also practices you can change in your business every day to improve sustainability. This includes creating less waste during production. While this may seem like a daunting and expensive task, it’s often more efficient in the long run. Trying out some of these small changes can really make a difference:

• Use recycling bins in the office
• Recycle or repair appliances
• Switch to rechargeable batteries
• Use recycled office supplies
• Promote reusable Tupperware

Time to Make Changes

Becoming a sustainable business definitely has its benefits. You can improve your brand image and form a trusting relationship with new and old customers. You can also increase your productivity while reducing your costs too. Reducing your waste remains one of the easiest ways to become eco-friendlier. But hopefully this guide gives you some inspiration to assess your business and create a strategy for success!