Tag Archives: #SmallBusiness #SMEsupport #cashcrunch

Business & Property News, Finance and Banking, News

Tyl by NatWest announces new payments partnership with FSB

NatWest Group has today announced a new partnership with the Federation of Small Businesses (FSB). This official payments partnership, builds on the support the NatWest Group has given to FSB over the years as the UK’s biggest bank for businesses.*

In 2020, NatWest Group established the SME Taskforce with FSB to help SMEs to respond to and navigate the aftermath of the COVID-19 pandemic, working together with stakeholders from across the small business landscape, the two organisations worked closely together to support customers.

Just last year NatWest announced a £1million partnership with FSB to provide NatWest business customers with access to independent support and education to help with the cost-of-living crisis via webinars, and 1-2-1 phone support and webchat.

FSB members will see cost savings and other benefits by signing up with Tyl, subject to eligibility criteria as part of the partnership. Insight from Tyl by NatWest found that 8 out of 10 businesses could save on fees when switching from an existing card payment provider to Tyl by NatWest.†

For the smallest businesses, Tyl offers a simple fee structure based on one low rate for personal card transactions (where the card is issued in the UK or Europe) and one for all other transactions. For bigger businesses, Tyl has a range of different fees to fit the needs of the business.

In addition to the possible business savings, Tyl by NatWest could help FSB members with the day to day running of their business through features including:

  • Choice of card machines or a phone app for in-person sales
  • Take payments online or over the phone
  • Payment links and QR codes to send out so you get paid quickly
  • Simple bills and next business day settlement
  • Tyl Portal for access to constantly updated sales data
  • 7 day a week UK-based service and support line
  • Tyl is part of NatWest which brings trust, security and experience to ensure safe payments

Available now, FSB members could be up and running with Tyl in just 48 hours.

James Holian, Head of Business Banking at NatWest comments:

“FSB and NatWest share an ambition to provide strong support for the growth of entrepreneurship and small businesses in the UK, and we are excited and proud to partner with FSB in payments services for its members.”

Mike Elliff, CEO, Tyl by NatWest said:

“Small businesses are critical for our economy and our communities. At a time where the cost of trading is rising for small business owners, Tyl by NatWest is delighted to be able to partner with FSB to provide its members with a full range of cost-effective and reliable payment solutions, backed by great service.” 

Caroline Lavelle, Chief Commercial Officer, FSB, said:

“I’m delighted to form this partnership with Tyl by NatWest. We have a long-standing history of working with NatWest on various business initiatives and look forward to this next step in our relationship.

“As many of our members, and the wider UK small business community, continue to navigate the increasing cost of trading, an opportunity to make savings on payments, which is core to every business, will be well-received.”

Finance and Banking, News

Small business demand big action from mini budget

Written by Ian Wood – Capify Marketing Director

Survey finds Britain’s SMEs looking to the new Truss government to help them tackle the problems of soaring inflation, weakening demand and rising interest rates.

A growing number of business owners are facing a shortage of cash in the bank, a new survey from specialist finance provider Capify has found. Released this week, the Q2 Business Confidence Survey revealed that bank-held cash levels had more nearly halved in the past six months, with the average now standing at £95,726 (compared to £188,474 in Q4 2021). Accordingly, 55% of SME businesses are now worried about the amount of cash in the bank – up 5pp on from Q4 2021.

For many firms, this cash crunch is a direct result of the inflationary crisis and the impact on costs throughout the supply chain. Although 56% of respondents have adjusted their prices to mitigate the impact of inflation, many face a lag between incurring higher production costs and implementing new pricing with their customers.

As a result, just under half of respondents (45%) cited reduced cash reserves as a direct consequence of inflationary impacts, whilst over one third saw a reduction in working capital.

What business wants

The latest survey found small businesses are calling on new Prime Minister Liz Truss to deliver on her campaign promises to boost growth, reduce taxes and cut red tape. Looking at specific policies, almost two-thirds of firms (64%) say they would like to see a reduction in the rate of corporation tax, whilst 46% of businesses would like to see a cut in the VAT rate on energy bills. Meanwhile, some 37% of companies say they would like to see a reduction in red tape from the new government, to help with the current challenges of running a business.

Unsurprisingly, these continued operating challenges have exerted downward pressure on turnover and profitability performance for many UK SMEs. The number of businesses who had grown turnover in the past year was down 8pp on the previous quarter – from 57% to 49% – whilst the number of businesses who grew profits in the same timeframe dropped by 11%.

The Survey which canvassed the insights of 320 SME business owners on business performance, confidence, and investment intentions, uses the data to produce an overall confidence score between -10 (very unconfident) and +15 (very confident).

A crisis of confidence

John Rozenbroek, CFO/CCO at Capify, said: “Understandably, as inflation soars the economy contracts, SME outlook is in a very fragile state. Confidence is at the lowest point since we launched the survey. Our Q2 SME Confidence score now sits at -2.70, a significant downgrade on the 7.68 we saw in Q1 of this year.”

“But it’s not just confidence which is impacting growth potential. We’re beginning to see the very real operational implications of this inflationary period”.

“For many SMEs, cash and working capital positions are both suffering as sale prices play catch-up with production costs.

“This is having a knock-on effect on business’ ability to make strategic investments for the medium- and long-term.”

Despite these significant challenges, UK SMEs continue to show the resolute resilience that has become a hallmark of smaller businesses over the past three years. Most surveyed firms remain bullish in the face of prevailing conditions, with 61% of businesses expecting revenue growth over the next 12 months and 40% anticipating headcount additions.

The survey also revealed that access to finance continues to be a real concern for UK SMEs however, only 40% of respondents felt confident they would be able to secure finance from their bank, down 8pp from Q1 2022.

Mr Rozenbroek added: “We know that access to finance is vital for smaller businesses struggling with these unprecedented challenges. UK smaller businesses are the lifeblood of our economy and when they stop investing and creating jobs it has wide implications”

“Clearly the new Cabinet will have a huge amount to work through to address these issues and, at Capify, we will continue to be there to support SMEs with finance provision for both short-term working capital and cash flow requirements, as well as longer-term investments.”

The survey received responses from UK SMEs across a wide range of sectors, including Information technology, manufacturing, professional services, retail and IT services. Almost 60% of respondents had been trading for over 15 years.

Finance and Banking, News

UK SMEs face cash crunch as impact of inflation bites

Latest research by alternative lender Capify finds SME business owners increasingly concerned about cash reserves, as income struggles to keep pace with rising costs.   

But survey also points to longer-term optimism with 61% projecting turnover growth over the next 12 months.

A growing number of business owners are facing a shortage of cash in the bank, a new survey from specialist finance provider Capify has found. Released today, the Q2 Business Confidence Survey revealed that bank-held cash levels had more nearly halved in the past six months, with the average now standing at £95,726 (compared to £188,474 in Q4 2021). Accordingly, 55% of SME businesses are now worried about the amount of cash in the bank – up 5pp on from Q4 2021.

For many firms, this cash crunch is a direct result of the inflationary crisis and the impact on costs throughout the supply chain. Although 56% of respondents have adjusted their prices to mitigate the impact of inflation, many face a lag between incurring higher production costs and implementing new pricing with their customers.

As a result, just under half of respondents (45%) cited reduced cash reserves as a direct consequence of inflationary impacts, whilst over one third saw a reduction in working capital.

Unsurprisingly these operating challenges have exerted downward pressure on turnover and profitability performance for many UK SMEs. The number of businesses who had grown turnover in the past year was down 8pp on the previous quarter – from 57% to 49% – whilst the number of businesses who grew profits in the same timeframe dropped by 11%.

The Capify Confidence Survey, also found that firms were holding back on investment. When asked about areas in which they intend to invest over the coming year, UK SMEs identified an average of just 1.41 initiatives, compared to 1.63 in Q1 of this year. Perhaps reflecting the ongoing labour market challenges, 40% of firms intend to invest in the recruitment and retention of staff, whilst planned investments in green and sustainability initiatives saw the biggest quarterly drop, from 21% to 10%.

The Survey which canvassed the insights of 320 SME business owners on business performance, confidence, and investment intentions, uses the data to produce an overall confidence score between -10 (very unconfident) and +15 (very confident).

John Rozenbroek, CFO/CCO at Capify, said: “Understandably, as inflation soars the economy contracts, SME outlook is in a very fragile state. Confidence is at the lowest point since we launched the survey. Our Q2 SME Confidence score now sits at -2.70, a significant downgrade on the 7.68 we saw in Q1 of this year.”

“But it’s not just confidence which is impacting growth potential. We’re beginning to see the very real operational implications of this inflationary period”.

“For many SMEs, cash and working capital positions are both suffering as sale prices play catch-up with production costs”.

“This is having a knock-on effect on business’ ability to make strategic investments for the medium- and long-term.”

Despite these significant challenges, UK SMEs continue to show the resolute resilience that has become a hallmark of smaller businesses over the past three years. Most surveyed firms remain bullish in the face of prevailing conditions, with 61% of businesses expecting revenue growth over the next 12 months and 40% anticipating headcount additions.

The survey also revealed that access to finance continues to be a real concern for UK SMEs however, only 40% of respondents felt confident they would be able to secure finance from their bank, down 8pp from Q1 2022.

Mr Rozenbroek added: “We know that access to finance is vital for smaller businesses struggling with these unprecedented challenges. UK smaller businesses are the lifeblood of our economy and when they stop investing and creating jobs it has wide implications.”
“At Capify, we will continue to be there to support SMEs with finance provision for both short-term working capital and cash flow requirements, as well as longer-term investments.”

The survey received responses from UK SMEs across a wide range of sectors, including Information technology, manufacturing, professional services, retail and IT services. Almost 60% of respondents had been trading for over 15 years.