You may recall that in April this year, Pinnacle Business Finance published an article about hope for the high street. Since that publication, there has been a barrage of news flooding the internet about the deteriorating condition on the high street. In August 2019, we tweeted an article from Business Money Magazine, whose headline was, ‘High street sales fell sharply … at their fastest rate since December 2008 … ‘. As a commercial finance broker based in Bristol, we visit dozens of businesses every week on our local high streets to listen to what they have to say. We are often left debating in the office; what’s next for the high street? This question led us to create this blog to show what support is out there, who can help, and what might be next.
A good commercial finance broker doesn’t just open doors; they can lead you through the right ones. On October 7th, The Daily Telegraph was one of a number of papers that covered the story around Pizza Express and its commercial finance dilemma. In short, it is becoming clear that Pizza Express is beginning the break under the weight of debt. From our Bristol office, we often see numerous businesses that are also struggling under the weight of excessive borrowing. It is important that small businesses, especially those on the high street, engage with a good commercial finance broker to help them with their options. It’s important to get the right type of finance for your business; accelerating growth, not at the cost of the future.
The commercial finance market offers many solutions for retail businesses, specifically situated on the high streets of Britain. One of our favorites is the Merchant Cash Advance.
Many of our retail businesses select a Merchant Cash Advance as a means of boosting cash flow as the repayment method means you pay back more when you are busier and less when you aren’t. This, coupled with ensuring your merchant provider is giving you the best rate on your merchant card terminal, is key. Every week, we help numerous businesses in the retail sector save money on their merchant card terminal. Ensuring a healthy balance between accessing cash and controlling costs will always prove a lucrative mix. Of course, conventional business loans and revolving facilities can also be a great solution for a high street business. These are just a few examples of what the commercial finance market can offer to the high street.
Innovation and adaptability are crucial to a business surviving. Naturally, this does not apply solely to the high streets of Bristol but to all high streets, industries, and countries. On the same day, The Telegraph reported woes for Pizza Express, and Burger & Lobster. They were writing about how they had refocused. We’re now looking at expansion again. They realised their initial expansion was too fast and made cutbacks, resulting in them being in a position to look towards the future again. In September 2019, the BBC reported that cash payments now represent just 20% of spending. Card payments the preferred method of payment. Here at our Bristol headquarters, we hear from at least one high street business a week that doesn’t take card payments. Therefore doesn’t have a merchant card terminal. If the BBC report holds true, high street businesses that don’t have a merchant card terminal could be missing out on 80% of business coming through their doors! This also means that they are limiting their financial options. For the business that doesn’t take card, merchant cash advance would not be available to them. Innovation will increase efficiency, lower costs, and allow retail businesses to access further capital if required.
From lowering costs via your merchant card terminal to accessing working capital via a merchant cash advance. Speaking to an expert commercial finance broker could be key to your business. Here at Bristol-based Pinnacle Business Finance, we pride ourselves on our expert knowledge. This is delivered through our team of astute commercial finance brokers. The high street might portray a mixed picture at present but, with the right support, any business can stand the best chance of success.