Cheap gas could protect firms from spiralling cashflow problems

Between 1 July 2019 and 31 December 2019, at least 10% of people who switched energy supplier for both gas & electricity with Uswitch saved £479 or more.

Reducing business operating costs could help tackle the problem of cashflow being hit by late payment of invoices.

Changing to a cheap gas provider could be one way for smaller firms in particular to rein in their costs while the UK's economy gets back on its feet.

According to a new Royal Bank of Scotland and NatWest study, less than half of the almost three-quarters of small and medium-sized enterprises impacted by late payments have taken action to reduce the problem.

One route of action could be switching to a cheap gas provider to make sure operating expenses are as low as possible to help provide a buffer to inconsistent cashflow.

Businesses with a turnover of under £1 million find the equivalent of 12 per cent of their annual turnover is not paid on time.

Stephen Alambritis, head of public affairs at the Federation of Small Businesses, stated: "Poor payment practices can drastically affect cashflow for small firms at a time when business owners are doing their best to hold on to precious funds."

The Environment Agency and the Institute of Directors have teamed to offer companies in Cambridge advice about how they can reduce their carbon output, which could also save money on energy bills.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.