< Previous20 Business Link www.blmforum.net SECURITY One of the most fundamental elements of physical security is perimeter control. This starts with the basics: sturdy doors and frames, robust locks, and well-maintained windows. For vulnerable entry points, particularly when the business is closed, physical barriers such as security grilles or shutters can act as a significant deterrent. Access control within the premises is equally important. For businesses with multiple employees or sensitive areas, keypad entry systems or proximity card readers can provide a far greater level of security than traditional locks and keys. These systems allow for the tracking of entry and exit, the easy revocation of access rights for former employees, and can create audit trails in the event of an incident. Surveillance technology has become increasingly sophisticated and affordable. Closed-circuit television (CCTV) systems act as both a deterrent and a crucial tool for post-incident investigation. Strategically placed cameras, covering entry and exit points, loading bays, and internal areas, can capture vital evidence. Modern CCTV systems often offer remote monitoring capabilities, allowing business owners or designated personnel to keep an eye on their premises even when off-site. Furthermore, clearly visible signage indicating the presence of CCTV can deter potential criminals in the first place. Beyond these core measures, several other often-overlooked aspects contribute to a strong physical security posture. Adequate lighting around the exterior of the premises, particularly during hours of darkness, can significantly reduce the cover available to intruders. Secure storage for valuable items, whether in locked cabinets or a dedicated safe, adds another layer of protection. Even seemingly minor details, such as ensuring waste bins are not left overflowing and providing potential climbing aids, can make a difference. Adding to these preventative measures, businesses across Yorkshire and Lincolnshire benefit from the presence of dedicated police forces committed to their communities. Efforts to bolster police numbers and funding aim to put more officers in local areas, proactively tackling issues that can affect businesses. This ongoing commitment to supporting police capabilities in Yorkshire and Lincolnshire signals a concerted effort to enhance the security of the region. While the importance of robust physical security measures for businesses remains undiminished, a strong and visible police presence offers a welcome layer of support in creating a safer environment for commerce and community.www.blmforum.net Business Link 21 CORPORATE FINANCE A new start-up looking to develop and launch a novel product, an established company on the road of continuous expansion, or a firm simply seeking to survive the challenging economic outlook, rising costs, and late payment epidemic — all businesses must be appropriately financed at every point of their journey. A firm’s relationship with corporate finance is thus a continual one, and one that will have different requirements throughout a business’s life, whether being utilised to provide access to capital, to manage cash flow or support expansion, hiring or acquisitions. Fortunately, there are a diverse range of options available to businesses seeking finance, all with their own advantages and disadvantages, from the conventional to alternative platforms, yet when it comes to smaller businesses, access and awareness are major challenges. Amongst the main types of business finance are debt financing, equity financing, and grants. With the first of these, a business takes on debt to borrow money, such as through the traditional method of taking out a business loan with a bank, repaying the amount borrowed over time with added interest. Remaining a common option, last year, the overall flow of bank lending increased, though remained lower than 2020 (driven by government- guaranteed COVID-19 loans) and 2022, as noted by British Business Bank’s Small Business Finance Markets report. A change has been seen, however, with the funding sources turned to, as the report showed challenger banks’ share of bank lending reached 60% of total bank lending - their highest ever share. A company might otherwise engage with debt finance through asset-based lending, often referred to alongside invoice finance, which in 2024 saw an increase in the value of advances to smaller businesses, with the full year average expected to be above £8bn for the first time since 2019. Securing finance against assets such as The right funding fit Appropriate financing is vital at every point in a business’s journey, but determining which form of funding is the best fit is not always simple. 22 Á22 Business Link www.blmforum.net CORPORATE FINANCE machinery, property and IP, asset-based lending offers benefits for businesses in unpredictable markets or with inconsistent cash flow. With this form of lending, it is possible to access higher levels of funding than with other financial products and gain flexibility, with fewer restrictions usually placed on how you can spend the facility. Of course, if repayments are not made, the lender may seize the asset put up as security. The similarly named but different asset finance, having grown for the fourth year in a row according to the British Business Bank’s report, enables a business to acquire an asset through leasing (without owning it) or hire purchase (to own the equipment at the end of the contract period), allowing a firm to secure critical assets, replace aging equipment and expand operations without adding pressure on cash flow or raising significant working capital before a purchase can be made. It means small or zero upfront costs, spreading of payments, and the asset being purchased is the security for the finance provider. However, with ownership in the hands of the finance provider until the borrowing business has paid in full, a provider could put limits on the use of the asset, the business may be liable for damage, and failing to keep up with repayments or terms of the agreement could lead to repossession of the asset. Invoice finance, meanwhile, allows businesses to borrow against their unpaid invoices. Firms can gain quick access to a percentage of the value of invoices, usually within 24 hours, obtaining the remaining percentage — minus the finance provider’s fees — upon payment of the invoices by the customer. Making use of an untapped asset, aside from the funding provided being employed in the running of your business, with invoice finance there are not normally restrictions on how the money is spent, presenting flexibility, plus an invoice finance facility can grow in real time in line with sales. The funding, however, is dependent on your customers, where a business may be held responsible if customers fail to pay their invoices. For this, invoice finance providers often offer bad debt protection. Furthermore, depending on the form of invoice finance chosen, there is the chance of impacting customer relationships, where in the case of invoice factoring, the finance provider will manage your sales ledger and be involved in collecting payment from your customers. In contrast to debt financing, with equity financing investors provide funding in exchange for a stake in the company, which avoids committing to a loan repayment schedule. These investors can also bring their experience and networks to help the business grow. According to the British Business Bank’s Small Business Finance Markets report, equity investment in 2024 was similar to 2019 and 2020 levels, prior to a significant uptick in activity beginning during the pandemic. Though the number of smaller business equity deals fell 24% in the first three quarters of 2024, compared to the same period of 2023, the value of deals increased 7%. Amongst the common types of equity financing is angel investment, where a high net worth individual uses personal www.blmforum.net Business Link 23 CORPORATE FINANCE funds to support an early-stage business for a share in the company, also acting as a mentor. Angel investors usually invest as part of a syndicate, with a lead angel coordinating the deal, and the backing of angels can provide credibility to a business upon seeking further investment. Often coming on board after an angel has helped businesses get off the ground is venture capital, where venture capitalists (VCs) invest in early-stage firms with high growth potential, while offering expertise. Acquiring a minority stake in a firm, generally alongside other investors, early-stage businesses can raise money from VCs in rounds (series A, B, C and so on), to gain investment from the same and new investors as they grow. With VCs holding investments typically for five to seven years, businesses will then usually go public on the stock exchange or be acquired by a corporation or another investor. In 2024, exits from venture capital-backed businesses illustrated improvement, with £10.4bn of total value from exits, as noted by the British Business Bank’s report, representing a 100% surge on 2023. This came from an increase in the valuations of individual businesses, while the number of exits remained similar between 2024 and 2023. With venture capital focused on young businesses with little history of profitability, turning to private equity (PE) firms is an option for established businesses seeking finance to grow, where PE firms invest in exchange for a large or controlling stake. PE allows businesses to secure investment alongside expertise to accelerate expansion, with PE managers working closely with business management and expecting board seats, while standing to gain substantial returns when exiting their investment. Regularly used to support management buyouts and buy- ins, PE investors work with established companies to drive forward growth. Giving away a significant, usually controlling, share in the business is a main repellent to this type of funding, which can involve substantial organisational change, whether involving strategy or management. Finally, in contrast to equity and debt financing options, grants present funding that does not need to be repaid and does not entail giving away a stake in a business. Qualifying for grants, offered by government and other bodies, can require meeting strict criteria, often features smaller amounts of funding that needs to be supplemented by other forms of finance, can necessitate match funding, and grants are designed to support specific projects and objectives. These are just some forms of finance businesses can engage with, showing the variety available, with more to be found amongst the likes of crowdfunding, peer to peer lending and others. With a declining share of small businesses reporting confidence in gaining information on the types of finance and providers available to them, falling from 60% in 2023 to 57% in 2024, according to the British Business Bank, many firms may be unaware of what is possible. With such vast options, determining which is suitable is not always easy, and professional advice should be sought. 24 Business Link www.blmforum.net RELOCATION AND INWARD INVESTMENTwww.blmforum.net Business Link 25 RELOCATION AND INWARD INVESTMENT T he need to relocate isn’t always made with downsizing or upsizing in mind, though this may be a necessary action either to save money or to enable a company to grow and expand its operations. Sometimes a relocation is made more with thought toward employment opportunities or the company’s image. With businesses across all regions struggling to grasp and retain top talent, relocating to an area with higher levels of candidates can open new labour markets. Graduates often flock to cities because of better employment prospects and higher wages, which can mean that while businesses enjoy rural landscapes, they don’t always enjoy access to top candidates. Having an office in a city centre often means more potential hires if a company either wants to expand or is struggling to fill available spaces. Relocation or building new facilities can be poised to take advantage of factors such as lower operating costs, access to skilled labour, favourable regulatory environments, or proximity to key markets. By investing in new facilities, such as manufacturing plants, offices, or research and development centres, jobs can be created to feed the local economy or provide spaces that contribute to the development of local industries. A tumultuous economy may not sound like the best time to relocate a business, but for many it can become the catalyst itself. 26 Á26 Business Link www.blmforum.net RELOCATION AND INWARD INVESTMENT Businesses are also increasingly considering relocation as a means to reduce carbon emissions and operate from more environmentally friendly and cost-effective premises. By investing in purpose-built developments, eco- friendly features can be integrated into almost any premises, from recycled materials to renewable energy sources like solar panels or wind turbines. Such initiatives reduce environmental impact, enhancing operational sustainability, and appeal to eco-conscious customers and consumers. But the green bonuses are only one facet of the extensive potential advantages of relocating to a new environment, with different business peers and connections. Collaboration with new businesses can even refresh the synergistic corporate environment within cities. Securing the funding to back such bold moves proves the stumbling block it always does. Support will be crucial in this area, perhaps more than any other, to grapple with substantial upfront costs associated with purpose-built developments. However, tailored solutions often require significant capital investment, particularly daunting for small and medium-sized enterprises with finite resources. Ongoing operational expenses associated with new premises, such as rent, utilities, and maintenance, can strain budgets, especially during the initial phases of relocation; this goes double for a growing or consciously limited business. To address these financial challenges, make sure to explore a variety of avenues for funding and support before taking leaps with anyone. Government www.blmforum.net Business Link 27 RELOCATION AND INWARD INVESTMENT grants and incentives offer a lifeline for relocation projects aligned with regional development objectives, providing financial assistance and favourable terms if a business qualifies. Additionally, forging partnerships with financial institutions or private investors can help secure capital for relocation initiatives, spreading the financial burden and easing the involved risks. It also goes without saying that a relocation can lead to a lot of upheaval and struggle within the business, and obvious downtime in many cases. On top of intruding on productivity and customer service, transferring to a new premises might involve transporting equipment and inventory, coordinating with suppliers and service providers, and reconfiguring IT infrastructure. To keep interruptions to a minimum, compose a relocation plan which takes every stage of transition into account. This includes establishing clear timelines, dividing responsibilities between key personnel, and thoughtfully taking note of all communication with stakeholders along the way. If the relocation is drastic, it can also prove an issue with existing employees who may not want to commute or move. Communication is key a good while ahead of a decision being made and allowing employees to offer their own thoughts can improve morale. However, if a decision has to be made for financial reasons or the continued health of the company then it might be necessary to come clean about that. Sometimes decisions have to be made irrespective of the thoughts and feelings of employees, and explaining why that is will do less damage than making employees feel their opinions don’t matter. 28 Business Link www.blmforum.net ENERGY AND ENVIRONMENTAL MANAGEMENT The green squeeze The green squeeze www.blmforum.net Business Link 29 ENERGY AND ENVIRONMENTAL MANAGEMENT Y orkshire and Lincolnshire, regions built on a strong foundation of industry and entrepreneurial spirit, continue to navigate significant economic pressures. While the drive for growth and innovation remains undimmed, the stark realities of stubbornly high energy prices and an increasingly stringent environmental regulatory landscape are forcing businesses to recalibrate their strategies. The persistent challenge of effective energy management demands ongoing attention across the region, with the crippling impact already evidenced by Lincolnshire businesses forced to close their doors due to unsustainable energy costs. However, there’s also a proactive movement within the region towards a more sustainable future. Harrogate BID, for example, has recently staged a meeting to launch ‘Sustainable Harrogate,’ bringing together key stakeholders like North Yorkshire Council, Zero Carbon Harrogate, the Harrogate District Chamber of Commerce, and major local venues. This initiative aims to identify both the challenges and opportunities of sustainability in Harrogate and develop a concrete plan of action, including exploring local electricity generation to cut bills and build energy resilience. This collaborative effort demonstrates a growing recognition within Yorkshire that sustainability is also a potential pathway to economic stability. The sheer cost of energy remains a critical pressure point for many businesses throughout Yorkshire and Lincolnshire. This is a burden tragically realised for businesses like Vine’s Bakery in Lincoln and The Plant Pot Café in Nettleham, Lincolnshire, where energy bill hikes of hundreds of pounds a month, compounded by rising food costs, have proven impossible to manage, leading to closure. While price volatility can fluctuate, elevated gas and electricity bills continue to erode profit margins, making operational efficiency not just desirable, but essential for survival and long-term resilience in a volatile global market. Addressing these financial pressures, which mirror the household crisis and have already claimed local businesses, remains crucial to prevent further closures and hinder economic growth across the region. But the environmental imperative extends far beyond mere energy usage. A complex web of legislation, both domestic and international, is shaping how businesses operate. From waste management regulations and emissions targets to water usage restrictions and biodiversity considerations, the legal framework demands careful navigation. Ignorance is no defence, and non-compliance can lead to hefty fines, reputational damage, and even operational shutdowns for businesses in Yorkshire and Lincolnshire, adding another layer of pressure to an already precarious situation for some. Adding to this regulatory pressure, from 31 March 2025, all workplaces in England with 10 or more employees face a legal obligation to manage waste according to the UK government’s Simpler Recycling regulations. This initiative aims to streamline the recycling process, ensuring businesses While energy prices and regulations bite, Yorkshire and Lincolnshire firms explore if green initiatives can offer respite. 30 ÁNext >