At BAS Associates, we pride ourselves on working closely with local small businesses to help our clients make informed decisions that will benefit their businesses, and its long-term success.
The team at BAS Associates are often asked about business loans and financing, and there are some areas we can provide suggestions. However, we often recommend clients get in touch with the experts in that field – we have a list of different contacts specific to needs.
Aware of the current financial challenges some business owners are currently facing, BAS contact, Aimee Litchfield from Choice Business Loans reached out and provided us with this update:
As another Bank of England base rate review approaches on August 2nd, it is anticipated that there will be another increase. However, we believe that rather than putting our plans on hold, seeking the right finance at the right price with a clear return on investment is crucial.
While some businesses may be hesitant about taking loans due to rising costs, now is the perfect time to gain a competitive edge. By investing in marketing and public relations, engaging customers, and continuing to grow when competitors are holding back, small businesses can position themselves for success.
It’s important to note that interest rates can vary significantly depending on the source of finance. Currently, rates range from 2.5% over base per annum for secured deals to 30%+ per annum for shorter-term lending.
However, fixed rates are available between 9-18%, which are considered normal in the current market. It’s understandable that businesses may have become accustomed to the unusually low rates offered by the Bounce Back and CBILS loans, but it’s important not to lose sight of what normal rates entail.
When considering a business loan, it’s essential to ask the right questions to fully understand the terms and conditions.
- Is the rate quoted over base or SONIA?
- Is it an interest rate or a flat rate?
- Are the repayments monthly or annually?
- Can early repayment or overpayment lead to interest savings?
These seemingly straightforward queries can result in substantial savings, potentially saving businesses thousands of pounds each year.
On the current position of interest and the business landscape, Aimee had this comment to make
“The team at Choice Business Loans strives to guide clients toward the most suitable sources of finance during these challenging times.
In times of adversity, it is crucial for businesses to come together, collaborate, and support one another.
By prioritising buying from smaller businesses, becoming champions for one another, and offering support and encouragement, we can navigate these challenging months together.”
Outside of interest rates and rising costs, there are numerous reasons why borrowing or alternative financing may been considered:
- Expanding operations
- Large purchases
- Marketing campaigns
- New equipment
- Start-up capital
To discuss potential business financing, and secure expert guidance on interest rates and finance options for your small business, you can contact Aimee here.
![Aimee Choice Busienss Loans](https://b2978897.smushcdn.com/2978897/wp-content/uploads/2023/07/EHP_CHOICE_BUSINESS_LOANS_011-200x300.jpg?lossy=1&strip=1&webp=1)
Aimee Litchfield, Choice Business Loans
BAS Associates works with numerous businesses – we always recommend that individuals and business owners take the time to select the right fit for their specific needs. Further to this, it is essential to seek financial advice and guidance specific to your individual needs and not make decisions purely based on general advice, such as that given in this blog post.
To discuss your business finances and support with your business compliance, contact the team at BAS Associates here.