Recently we saw the announcement that The Bank of England will be raising their base rate to 1.25%, which is the highest rate for over a decade.
Rates have increased from 1% to 1.25%, the fifth consecutive rise, pushing them to the highest level for 13 years. It comes as finances are being squeezed by the rising cost of living and the record-high fuel and energy prices. Inflation - the rate at which prices rise - is currently at a 40-year high of 9%, and the Bank warned it could surpass 11% later this year.
Increasing rates now means that UK SMEs with existing loans will be forced to spend more on interest payments, reducing cash flow by giving you less disposable income and bigger overheads. That means navigating higher rates will be particularly difficult for companies that have already struggled due to the pandemic and the recent material shortages.
A way that businesses can combat this is to utilise finance options such as equipment finance, business loans or refinance. These methods will help your business cope with the recent inflation as they manage your cash flow more effectively whilst stabilising or even growing the business. Act now and keep your business moving forward!
To find out more about the Benefits of Asset Finance, Equipment Finance or Business Loans then please click on the link to download the full PDF: https://lnkd.in/ePHAgzn9 or contact one of our account managers: info@approved-finance.co.uk or call 01908 429888
If you would like more information on the Bank of England’s decision to increase the base rate to 1.25%, then please click the link below: