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Interest rates to increase again, how GSM can support your business.

Updated: Sep 26, 2022

Bank of England has raised interest rates from 1.25% up to 1.75% and it is forecasted that interest rates will again rise, now is the time to take advantage of fixed rate finance loans, before interest rates rise again.

Higher interest rates can ripple throughout the economy with mortgages, car loans and business loans becoming more expensive, slowing down cash flows, unless you have a fixed interest rate loan.

Interest rate rise happens when the Bank of England increases its base rate, charging more interest on the money it lends to financial institutions and pays more on interest on the funds it holds, impacting how much your bank, or lender charges you to borrow, earning more from savings but paying more on borrowing.

The high-interest rate environment can lead businesses to pause investments and growth plans. A fixed interest rate stays the same, therefore for the entire loan term, which means your repayments will remain the same. Thus making it easier to manage your budget over a period of time. Financial markets are anticipating the Bank of England will more than double its interest rates next year, as concern mounts about further rises in UK inflation, fuelled by increases in forecast inflation with soaring energy, fuel and food prices.

Right now, inflation is high and interest rates are climbing, using fixed interest rate finance offers the certainty of budgeting monthly, fixed interest rate loans are the most competitive option for your business and buying at today's prices to beat inflation. The Bank of England has confirmed that under the stressed conditions, lenders have the capacity to continue to lend and support the economy.

But not all is doom and gloom, now is the time to take advantage of fixed rate finance deals before interest rates rise again, using finance to protect your cash flow, and buy stock and/or equipment, as finance is predicted to be cheaper now than in the forecasted future. As interest rates rise, taking out a fixed rate agreement now will save you in the long term.

When making credit decisions, lenders consider the impact of raises in interest rates. Some of the advantages of fixed rate finance loans include:

  • Buying the assets your business needs to help your business grow.

  • Competitive rates.

  • Avoiding price inflation with fixed interest rates.

  • Protect cash reserves/cash flow by spreading payments over a period of time, rather than paying one lump sum.

GSM are here to help, with the expansion of your business and help you understand how we can guide you through your business needs when times ahead are a bit uncertain.

As London’s largest independent asset finance brokerage, we help fund assets with competitive and flexible terms. We use lease, hire purchase and loans to provide the ideal financial package to help grow your business. Acquire assets your business may need to secure its future, for a loan to secure its present or releasing equity from assets already owned, GSM can help.

Take advantage of our fixed-rate finance deals at the current low-interest rates before they rise again.

Enquire today for more information

020 8874 9994

Alternatively, please fill out a contact form and a member of our team will get back to you


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