Yesterday the Bank of England announced the first interest rate rise in 10 years.
The rate has increased from 0.25% to 0.5% with Mark Carney the Governor of the Bank of England hinting that further interest rate rises are on the cards, albeit they should be done gradually. An increase in the interest rate will affect your business and those doing business with you. Most small businesses depend on credit to help finance their business activities.
Whilst the effect of an interest rate rise varies from business to business generally speaking firms that make luxury goods are hit hardest because customers cut back on non-essentials when their incomes fall as a result of a rise in interest rates. Also businesses big and small that operate with overdrafts will have higher costs because they must now pay more interest. In short those businesses that were already finding trading conditions difficult will find the conditions even tougher with the threat of interest rate rises to come.
To help minimise the effect of the interest rate rise on your business tighten up on your in-house processes. By ensuring that new customers have a good credit rating especially those larger ones that are crucial to the success and ultimate survival of your business.
We can help you streamline those processes and also help you ensure recovery of money that is owed to you so that it sits in your bank account and not your customers. Experience has shown us that when businesses feel the squeeze on their finances it is important that your request for payment is considered promptly and remain at the top your customer’s letter in-tray.
If we can assist you in any way and you would like to talk to one of our experts please contact us on:-
T: 0800 051 4212
E: enquiries@thedebtcollectioncentre.co.uk
The Debt Collection Centre recovers the debts that others can’t- powered by Devonshires Solicitors.
