Earlier this year, Pinnacle Business Finance published an article about hope for the high street. Since then, there has been a barrage of news about the high street’s deteriorating condition. In August 2019, we shared an article from Business Money Magazine, whose headline read: “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 hear 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 available, who can help, and what might come next.
Lessons from Pizza Express
A good commercial finance broker doesn’t just open doors. They lead you through the right ones. On 7 October, The Daily Telegraph was one of several papers covering Pizza Express’s commercial finance dilemma. In short, it is becoming clear that Pizza Express is beginning to break under the weight of debt. From our Bristol office, we often see businesses struggling under similarly excessive borrowing.
It’s important that small businesses, especially those on the high street, engage with a good commercial finance broker to explore their options. Getting the right type of finance matters. It should accelerate growth, not put the future at risk.
Finance options for high street retailers
The commercial finance market offers many solutions for retail businesses on Britain’s high streets. One of our favourites is the Merchant Cash Advance.
Many of our retail clients choose a Merchant Cash Advance to boost cash flow, because the repayment method means you pay back more when business is busy and less when it isn’t. Pairing this with a good rate on your merchant card terminal is key. Every week, we help retail businesses save money on their merchant card terminal.
Striking a healthy balance between accessing cash and controlling costs will always prove a lucrative mix. Conventional business loans and revolving facilities can also work well for a high street business. These are just a few examples of what the commercial finance market can offer.
Why innovation and card payments matter
Innovation and adaptability are crucial to a business’s survival, and not just on Bristol’s high streets. This applies to every high street, industry, and country. On the same day the Telegraph reported on Pizza Express, it also covered Burger & Lobster. The piece explained how the chain had refocused after realising its initial expansion was too fast, made cutbacks, and was now in a position to look towards growth again.
In September 2019, the BBC reported that cash payments now represent just 20% of spending, with card payments now the preferred method. At our Bristol headquarters, we hear from at least one high street business a week that doesn’t take card payments, and therefore has no merchant card terminal. If the BBC’s figures hold true, these businesses could be missing out on 80% of the trade coming through their doors, while also limiting their financial options. A business that doesn’t take cards cannot access a Merchant Cash Advance either. Innovation increases efficiency, lowers costs, and allows retail businesses to access further capital when needed.
Speak to an expert broker
From lowering costs through 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. At Bristol-based Pinnacle Business Finance, we pride ourselves on the expert knowledge of our team of commercial finance brokers. The high street may present a mixed picture at present, but with the right support, any business can give itself the best chance of success.
