New research from Premium Credit, a premium finance company shows SMEs are most likely to raise prices for customers as they attempt to address soaring energy bills.
Premium Credit’s Insurance Index, which monitors insurance buying and how it is financed, found nearly one in four (23 per cent) will increase prices to attempt to recoup rising costs ahead of nearly one in five (17 per cent) who will cut running costs by lowering pay rises and not replacing staff who leave.
Just 4 per cent of SMEs questioned fear they may have to stop trading, and around one in 12 SMEs (8 per cent) say they will cut jobs to keep business costs under control.
However, the research for Premium Credit’s Insurance Index, which shows more firms are turning to credit to ensure they maintain important insurance cover, found nearly two out of five (38 per cent) of SMEs questioned do not know how they will address the issue of rising energy bills.
Some firms will change the way they work with 15 per cent saying they will look at more remote working for staff where possible to cut bills while 12 per cent will cut back on buildings and office space and around one in 20 (5 per cent) will shut parts of the business.
Business investment will be hit – 11 per cent of SMEs will cut back on investing in the firm while 13 per cent will postpone plans for expansion. Around one in eight (12 per cent) will run down company savings to afford bills.
Owen Thomas, Chief Sales Officer at Premium Credit commented: “SMEs are showing remarkable resilience in how they cope with rising energy bills but it is worrying that so many do not know how they will address the issue.”