A new survey by Time Finance shows that the rising costs are forcing SMEs to scale back their investments. 

The study revealed that one in five SMEs are not able to invest in growing their business and one in ten businesses are unable to meet their existing financial commitments. 

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Time Finance, which provides funding solutions to UK businesses, has warned that scaling back investments will have a wider impact on the economy. 

Time Finance CEO Ed Rimmer said: “There is undoubtedly a huge cost of living crisis that must be addressed but by putting the onus on businesses to reduce their prices while they themselves are experiencing rising costs, we would simply be solving one problem by exacerbating another.

“To see that a fifth of businesses cannot afford to invest in their own growth is a worrying indication of where our economy is headed. If we do not prioritise support for businesses, not only will they struggle to keep up with the day-to-day costs of running a business such as paying suppliers, staff wages or making critical investments, but sadly some just will not survive.”

In early July, Time Finance found that 63% of businesses have hiked their prices by 10% and one in five by up to a 30%. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to the firm, for some SMEs increasing the prices has been necessary to keep them afloat. 

However, the rising cost of living and the government’s pressure to reduce costs will leave many in a state of dismay, it added. Every year, around 20,000 business owners access Time Finance’s services that include asset finance, invoice finance, loans and vehicle finance.