As suspected, the Bank of England has cut interest rates to a record low of 0.25%. This move has been met with mixed reactions from UK business leaders.
The National Head of the Federation of Small Business (FSB) said that whilst the longer term economic implications of Brexit on small businesses is as yet unknown, the interest rate cuts should be beneficial in the short term, leading to cheaper borrowing costs, meaning that finance will be more affordable and this should help to support business investment. He did however add that, whilst a further depreciation in the Sterling could be positive for small exporters and tourism to the UK, it could have a negative impact on inflation, prices and investment.
The CBI's Chief Economist, Rain Newton-Smith welcomed the measures, saying that the interest rate cuts, together with more quantitive easing, should be positive for UK business, helping to restore confidence in the economy by lowering borrowing costs and keeping liquidity flowing.
At Beavis Morgan, we have extensive experience of providing specialist advice and planning to small and medium sized (SME) businesses and we are on hand to assist you remain profitable and increase your net worth.
Our partner business, BM Structured Finance, is also available to assist with any funding needs that you or your business may have. As specialists in sourcing and restructuring debt finance for SME businesses, we match the most suitable products to each individual circumstance and work together to ensure compatibility and satisfaction, thereby enhancing the business’ cash flow liquidity and facilitating maximum growth.
For more information about how we can help you and your business, please contact Steve Govey or your usual Beavis Morgan Partner.