
Inflation, costs and cash flow
Strategies and financial solutions to help you reduce business costs, mitigate risk and manage cash flow.

Impact of rising costs
With a decline in trading and reduction in profits, cash flow can be impacted and your ability as a business to purchase goods and pay suppliers may be compromised. Signs of financial stress your business might experience could also include breaching current account facilities, missing loan payments or difficulty paying wages, which could impact your ability to fund anything other than immediate debts.
Early warning signs of financial distress are therefore incredibly valuable. Knowing what to look out for means your business could have more time to react to any problems.
How to reduce costs
When inflation rises, so do business costs. There are a number of strategies you can use to limit the impact, both in the short and long term. From reviewing travel budgets and cutting down wastage to reimagining office space and investing in green technologies, we have some ideas to help.


Ways to manage short term cash-flow pressures
Running out of cash can be a problem for many businesses, especially during the current economic climate. Late payment can leave you unable to pay your suppliers and staff, or cover overheads. Every business needs funds to purchase goods and services and these will often be held as stock until they are sold, so there may be a period of credit before the end customer pays.
From good forecasting, scenario planning and getting paid promptly, there are ways to inject cash into your business and better manage your cash flow through financial products that may be less costly than an overdraft.
Products to help short-term cashflow needs
Managing risk
Many businesses aren't aware of the risks they're exposed to when they import, export, borrow or save. It’s therefore helpful to understand these risks and find solutions to protect your business against cash-flow issues or reduced profitability. When trading internationally, you can protect your business against the risk of not getting paid or receiving goods and services, as well as fluctuations in currency exchange rates which could impact profit margins. Finding ways to manage the cost of borrowing for your business can have a positive impact on your cash flow and profitability, helping to protect your business against unexpected increases in interest rates, and allow you to forecast cash flow more easily.
Reduce costs through sustainability
Find out how transitioning to low-carbon, sustainable business models and pursuing clean growth opportunities can help you reduce costs.
Get in touch
If you’ve missed payments on your account or you’re worried about missing them in the future, please contact us. The sooner we know the sooner we can help you put a plan in place to manage your repayments. If you have a named Relationship Manager you should contact them in the first instance. If not, please speak to someone in the Business Management Team on 0345 072 5555 or +44 1733 347 338 if you're outside the UK.
If you have a hearing or speech impairment you can use Relay UK. More information on the Relay UK Service can be found at https://www.relayuk.bt.com.
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Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.
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