Dawsongroup | finance: How To Prepare for An Interest Rate Rise
With inflation hitting the highest rate in 30 years – 7 percent in April according to the latest Office of National Statistics figures – businesses everywhere are bracing themselves for another potential interest rates rise.
The Bank of England already raised the UK’s Bank Rate in March – a small hike from 0.5 per cent to 0.75 – but with inflation predicted to rise still further, potentially going as high as 10 percent later this year, further action is inevitable.
Dawsongroup | finance has a number of ways to prepare your business for interest rate rises and limit the financial impact on your business’s finances.
The Impact of Rising Interest Rates
How far the Bank of England will go to try to bring inflation back under control is uncertain – but we do know the next interest rate decision will be revealed on 5 May.
Higher interest rates send shock waves through the economy with everything from mortgages to car loans potentially becoming more expensive.
Find out about the impact this may have on your business here.
How You Can Protect Yourself from Rising Interest Rates
Take steps now to assess the type and level of your debt and review your business strategy with higher interest rates in mind. It is possible to insulate yourself from the worst of it and protect your capital and cash flow.
One way you can prepare is by reviewing your current finance agreements. While a variable rate might have made sense in recent years, it no longer does – now is the time to switch into fixed-rate options if possible before they reset. A fixed interest finance agreement, such as those offered by Dawsongroup | finance, can allow you to avoid any potential stings from rising interest.
Read about more ways to protect yourself from rising interest rates here.
Find out more about Dawsongroup | finance and how our asset financing options can help your business to be ready for interest rate rises here.
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