Why the new year is the perfect time to invest in your business

We’re hopeful this year is going to be a good one. Despite the economic headwinds, small business owners are resilient. That determination and grit to succeed will stand you in good stead for the year to come.

If you’ve got big plans for the upcoming year, January is a great time to invest to make those plans a reality. Here are 5 reasons why investing upfront makes good business sense.  

1. Start the new year strong

 
Many businesses align their fiscal year with the calendar, so January marks the beginning of a new financial year. It is a time to review last year’s performance, set new goals and allocate budgets for the next 12 months.   

By investing early, you signal to your employees, customers and suppliers that you’re feeling confident about the year ahead, setting your business up for a successful year.

2. Make the new year a productive one

 
When you secure assets at the beginning of the year, you get a full 12 months’ usage, making them more efficient. 

If any equipment or machinery caused downtime or inefficiency last year, an upgrade could: 

• Increase productivity immediately

• Reduce maintenance and repair costs

• Help you respond faster to customer demand

• Improve accuracy and quality

3. Maximise tax breaks

If you purchase a new asset for your business this year, you could be entitled to tax breaks. 

Thanks to capital allowance tax breaks, you could deduct the full cost of qualifying vehicles, machinery and equipment from your taxable profits, saving you up to 25% on the cost of your new asset. 

Invest early and you can maximise these tax benefits ahead of year-end, and spread repayments over the next 12 months. 

Find out more about what capital allowance tax breaks are available in our Small business guide: Tax breaks when buying a new asset.

4. Take advantage of January sales

While everyone else is wrapping up Christmas, get a head start by looking to negotiate a deal on your new asset.

Dealers will be looking to get the year off to a good start and meet their targets early, so there could be a deal to be had. If you’re in the market for a new vehicle, dealers might be keen to clear their old stock to make way for March’s new license plates. 

5. Spread the cost over a year

Investing in January means you have a full year to spread your repayments. This will help manage cash flow, so you can put your new asset to work immediately and use the income it generates to pay it off 

If you’re making plans for the new year, we can help. You can apply for a loan or line of credit in minutes. Check if you’re eligible today on our website.

01/01/26: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.