Business profitability hit by energy price hikes

Energy costs are hitting many SME and owner-managed businesses hard as, in terms of a percentage of turnover, energy costs are up by 70% on 2012, having increased from 0.3% to over 0.5%, analysis by has revealed.

Wholesale prices of energy have seen various hikes over the last year. The Arab Spring threatened suppliers at the start of 2011, which was shortly followed by the nuclear disaster in Japan caused by an earthquake in March 2011.

Managing Director of, James Constant, said of the figures, “Historically, businesses could afford to ignore energy costs, because they seemed almost negligible in relation to their profits.”

But this may not be the case any longer, as energy costs could soon account for 1% of total business revenue if trends continue.

“No one is in a position to accurately predict the market right now, but anyone responsible for energy should certainly ensure that they are as prepared as possible for what is to come,” Constant concluded.

Invoice finance for cashflow assistance

Is your business being hit by the exponential increases in energy costs? Are you having to delay growth plans to cope with additional cost pressures that are out of your hands such as energy costs?

Invoice finance, which includes invoice factoring and invoice discounting, is an ideal solution for businesses requiring a flexible cashflow solution.

It works to release cash you have tied up in unpaid invoices, meaning you get the money you’ve earned quickly and simply.

Why not browse our website to find out more about how invoice finance could assist your business.