Setting realistic targets for 2022 and how to raise the finance to achieve them

17 Feb 2022

If your business survived 2020-2021, you’ve come through the deepest recession and trauma this country has experienced in several decades. In some ways, getting through the downturn and pandemic proves that you have grit, and your business is built on solid foundations; if your business survived the pandemic, you could survive just about anything. As society and businesses crank back into life after the lockdowns and restrictions, 2022 could be a bumper year for many SMEs. We’ll use specific businesses as examples to discuss ideas and examples of how to get the funding in place to achieve your ambitions and targets.

Business plan on paper

What realistic targets do you have for 2022?

The first quarter of the new year is often a period for reflection and target setting. If your business experienced a boost over Christmas and the New Year, you might experience a lull in January and February.

During this quieter time, you can get proactive and remain positive by developing a yearly plan with realistic sales targets.

Though some may find even these goals unrealistic without additional funding, speculating to accumulate isn’t a lazy trope, and it’s a fact. But you can limit your financial risk if you execute a detailed plan and select the right funding option from the outset.

Consolidation and sales promotion

Consolidating your business requires you to examine where your customers come from, how often and why? Repeat what you do well and look to make improvements where possible. If you don’t protect what you have already built up, you will move backwards.

So why not reach out to your current customers using the tools at your disposal? Use social media, calls, texts, leaflets, new brochures, local advertising.

You could employ a freelance SEO expert to work on your website or a social media firm to tweet, post images on Instagram and place video content on Tik Tok on your behalf. You can quickly adapt this digital campaign to contact new potential customers.

For an inexpensive short-term campaign, you could use an overdraft as working capital. Seasonal businesses often use this form of cash flow funding to smooth out the troughs.

Many firms don’t take on new orders due to cash flow concerns. They know the extra sales are possible to obtain, but they’re stuck in a Catch 22 situation; they can’t supply new orders because they mightn’t have the funds to buy the stock. An overdraft could be the solution to this temporary problem. You’re funding future sales, and any lender would take such a proposal seriously.

Redecoration and redesign

The first quarter of the year can be ideal for a redesign or redecoration. If you’re in a fashion, style or leisure industry, you must keep updated with trends. Salons, restaurants, cafes can often do with a makeover inside. However, you might consider outside changes by signwriting or buying neon signs.

There’s an element of psychology in play here; a fresh image suggests a progressive and successful business. Direct working capital loans might be the ideal solution to make bold statements over a short-term period.

Buying new capital equipment

After evaluating your opportunities for 2022, you might identify the need for new capital equipment. These could be new vehicles if you’re in the transport industry or replace additional industrial equipment for your premises.

Asset finance could be the perfect solution for new capital equipment and vehicles. Asset finance also includes leasing, contract hire and hire purchase options. There’s also the possibility to use asset refinancing to finance equipment that your firm already owns.

Pivot and find additional revenue

AAs you consider what possibilities exist for your SME, you might realise you can pivot your business to explore new markets. Many of these pivots are uncomplicated and straightforward but require a detailed forensic examination to decide if they’re workable.

For instance, could you expand to open a bar if you’re a restaurant? Could you develop the business to capture outdoor catering or deliver lunches and coffees? You have the premises, so what do you need to squeeze the most out of the space?

You might need asset finance for delivery vehicles or working capital finance to take on more staff, increase hours, and create marketing material to support the pivot.

Fund my business

Buying premises

Part of the excitement of running your own business is the sense of control you get. If you can buy the premises you work from, you’ll develop long-term security and know that your firm could have a significant asset on its balance sheet once the loan gets paid off.

You could be a service company who wants to buy warehousing premises or a high street firm who could buy commercial premises perhaps with accommodation above from which you can derive income.

Several lenders supply commercial mortgage loans to obtain property. The loans work in similar ways to residential mortgages, although you might need a deposit of 20%. The rates for commercial mortgages can be slightly higher, and the terms are often shorter than the typical twenty-five years for a residential mortgage.


If you’re considering expansion in 2022, one or several funding options mentioned above could be the right solution. Suppose you’re a high street business and have ambitions to replicate your success at a different location. A combination of working capital, asset finance, or a commercial mortgage might be ideal.

If you have a successful track record and can prove positive cash flow, you’ll stand a better chance of your loan application getting accepted by lenders.

The Recovery Loan Scheme

However, let’s not forget that the UK government implemented the RLS recovery loan scheme. If the pandemic has affected your business expansion plans or thwarted your business ambitions, you could apply for the RLS on very generous terms.

You can examine the small print and eligibility of the RLS in more detail here. Lenders can’t ask for security or personal guarantees for smaller loans (below £250K). But each lender has its specific lending criteria. Therefore, it’s best to use a service like Funding Options if you’re considering the RLS. We’ve already created a filter process to show which lenders are most likely to consider your application favourably.

Apply for an RLS loan

Whatever loan you consider most likely relevant to support your ambitions and targets in 2022, we’re ready to help you in whatever way we can. We’re passionate about helping entrepreneurs fulfil their potential. You can begin the next leg of your journey by clicking here.

Get funding

Joe Morley
Joe Morley

Head of Unsecured Lending

Joe has worked in the alternative lending space since 2015. During this time he has helped hundreds of SMEs access millions in essential funding ranging from long-term asset-backed lending to short-term unsecured revolving credit lines and beyond. In his role, Joe manages and supports a large team of Credit Finance specialists.

Subscribe to our newsletter today

Sign up for the best of Funding Options sent straight to your inbox.