Running a business can put your health at risk. A new study has shown that the wellbeing of small business owners is being negatively affected by operating their companies. Costs and finance are causing the most stress. Alternative finance can help reduce this pressure.

According to new research from Opus Energy, over three quarters of the small business owners questioned reported that they were losing sleep because of their company. Costs and finance were the principal concern, followed by work/life balance and attracting customers.

The link between business costs and finance and business owner ill health is not a new one – a recent survey recently highlighted how late payment is causing mental health problems – but it underlines the importance of finding a solution to funding issues. As well as late payment, small business owners have to manage costs relating to business rates, cybersecurity, payment technology, pension auto-enrolment and new living wage and apprenticeship regulations.

In addition, challenging market conditions are adding to the pressure, with prolonged uncertainty over Brexit widely blamed for stalling development. A new survey has revealed widespread concern over the impact of Brexit on the supply chain.

So, how can small business owners avoid cost- and finance-related stress? Alternative finance can help. Services such as invoice finance, asset finance peer-to-peer lending and crowdfunding are being used by small businesses to raise start-up funding, generate funds for investment and safeguard cashflow. Tellingly, as Brexit approaches, more and more businesses are turning to alternative finance – a recent survey reported a strong increase in the number of SMEs using such services.

This is how a Sussex SME used peer-to-peer lending, through a commercial finance broker that specialises in alternative finance, to raise the money to buy new equipment.

This year is proving a challenging one for small business owners and the growing number of reports highlighting the impact of conditions on their health comes as little surprise. This is an issue that needs urgent attention and one way of helping reduce cost- and finance-related stress is by raising awareness of alternative finance and the benefits of the sector’s various services.

Want to know more about what A&T Business Associates can do for your business? Contact Tony on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.