The Bank of England’s decision to keep the base rate at 5% (as of 19 September) will continue to have an effect on borrowing costs for businesses. In this commentary, we look at what this means for businesses and how they’re navigating the current economic climate. Here’s our take…
Commenting on the Bank of England’s base rate announcement, Ben Davies, Co-founder, Hexa Finance, said: “The Bank of England’s decision to keep the base rate at 5% means businesses will continue to navigate a landscape of higher borrowing costs. While this environment can be challenging, it’s important not to lose sight of the role finance plays in driving growth and sustaining operations.
“Rather than holding back on investment, now is the time for businesses to take a closer look at their financial strategies. Careful planning and a focus on cash flow can help mitigate the impact of higher interest rates. Additionally, exploring the right finance options could open up opportunities for growth, even in uncertain times.
“While the cost of borrowing is higher right now than in recent years, it’s about finding the right balance between funding your plans and maintaining financial health. Businesses should stay informed, proactive, and ready to adapt as economic conditions evolve.”
Looking for advice on your borrowing options? Follow this link: https://www.hexafinance.co.uk/contact/