Small businesses still struggling for bank finance

Small businesses are still struggling to get bank finance despite Government assurances that banks would be forced to start lending again to help get small to medium enterprises back on their feet. With the constant scare stories about spiralling business energy costs, this will be a perilous time for many businesses.

According to a report by the Press Association today, almost two out of three businesses that went to their bank for finance in the past year had their applications rejected, and many are now turning to credit cards to fund their short term spending needs. This, coupled with the news that credit card interest rates have hit a 12-year high, will be a real concern for many SME owners.

Now more than ever it’s vital for businesses to keep their overheads in tight check, and business gas and business electricity costs are among those overheads that can make a real difference – perhaps even the difference between profit and loss

Reviewing your business energy costs can, at first glance, seem like a nightmare task. You need to establish who you are paying, how much you are paying, and what tariff you are on.

One of the most important things to know, however, is when your business gas and business electricity contracts are up for renewal. Business energy suppliers have a habit of rolling over contracts with very small windows for termination, and you’re highly unlikely to get as good a deal as a new customer if you stick with the same supplier. If you’re unaware of your renewal date, you could find yourself tied into a high-cost contract that’s fixed – so you’re unable to get out of it.

That’s where an online comparison site such as Energy Advice Line can help. Free and impartial business energy comparison services such as EAL have the ability to negotiate excellent rates from major gas and electricity suppliers. What’s more, they can handle the switchover process for you, have pre-prepared termination notices for your old supplier, and can even remind you of your renewal date so you don’t get tied into an expensive business energy contract without your knowledge.