As we are all now well aware, the Mini-Budget triggered turmoil in the market that was already concerned with a worsening economy in the UK and around the world.

Borrowing costs surged, and the Bank of England was forced to intervene to buy gilts and support the market.

The impact of the last few weeks will be felt for months to come through higher interest rates and greater market volatility.

What does all this mean for entrepreneurs who need access to capital for their businesses to grow and thrive?

The good news is that there are still funders looking to lend to businesses with a solid business plan.

However, there is a reduced appetite for risk, and it’s more important than ever to be properly prepared before seeking financing.

Transparency is everything.

It’s vital to produce forecast information and a real-time view of the business.

Give lenders an accurate view of your business and how it is managing the rising cost of business.

Resilience is essential in the current economic climate.

Too often, companies go to the market to seek funding without undertaking the due diligence that will appeal to funders and help to secure a better deal. Increased concerns about the economy have seen financiers take a more cautious approach.

We have already seen some funders reduce their level of appetite on loan to value, by up to 10 per cent.

A good advisor will help the business navigate the current volatility and find the right funder for your business.

They will also help you package your business correctly and put you in the best position to secure capital.

Looking forward, the economy is facing a tough time over the short term, but we can expect funders to return to the market in greater numbers in the spring of next year.

The base rate will likely be five or six per cent in early 2023 and reduce as the year goes on.

Despite the headwinds most business face, entrepreneurs should pause, take a breath and not panic, waiting for a more positive environment before making decisions could in itself prove detrimental.

Some light at the end of the tunnel is that it’s likely over the next 12 months that more funders will return to the market, and it will allow firms to negotiate better terms.

In a society with a 24-hour news cycle, optimism can be challenging to maintain.

However, it’s the entrepreneur's greatest asset in a world that is expected to experience economic difficulties in the months to come is optimism.

Perhaps this is the first time in a very long time that you can’t predict what will happen to the economy.

So the best advice is to plan for volatility and to make your business as flexible and resilient as possible.

Mel Hird is director of Fresh Thinking Advisory.

Entrepreneurs can still be optimistic despite Mini-Budget turmoil - Mel Hird