If your business has felt harder to run lately, you're not imagining it. Costs are up. Customers are spending less. And there's more paperwork than ever. It's a lot to deal with at once.

Here's a straightforward breakdown of what's happening and what you can do about it.

Your costs are going up

Everything from energy to supplies to wages has got more expensive over the past year. A lot of that is down to global pressures: conflict in the Middle East is pushing up fuel and energy prices, which ripples into the cost of pretty much everything else.

If your margins were already tight, those extra costs hit harder.

Customers are pulling back

At the same time, the people buying from you have less money to spend. Household bills are up, and many consumers are cutting back on anything that isn't essential. That means slower sales for a lot of small businesses - especially in retail, hospitality and anything that falls into the 'non-essential' category - meaning things people spend money on when they have a bit extra to burn.

There's more regulation to keep up with

April 2026 brought a wave of new employment law changes. Sick pay now kicks in from day one. Parental leave rights have been extended. And businesses have stronger legal duties around harassment in the workplace.

These are important protections for your staff. But they also mean more admin, more cost and more to get right.

What this means for your cashflow

When costs go up, sales slow down and admin increases all at once, cashflow takes the strain. Money coming in slows. Money going out speeds up. That gap in the middle is where businesses get into trouble.

The good news is it's manageable, if you can see it coming.

What you can do right now

Keep a close eye on your cashflow. If you don't already have a simple forecast showing what's coming in and going out over the next three months, now's the time to build one.

Talk to your accountant or bookkeeper. They can help you spot pinch points before they become problems.

And if you need a cash injection to bridge a gap or keep things moving, that's exactly what business lending is for. We always say 'we're here when you need us' but the truth is we're actually here before you need us too - and that's the best time to apply.