interest rates

Worried about the interest rate rise? No problem, Key Finance can help

The Bank of England has raised interest rates for the first time in 10 years, from 0.25% to 0.50%.

The news spin immediately turned to the possible impact on homeowners and businesses and, put simply, an interest rate rise means the cost of borrowing is going up.

A couple of days after the announcement, discussions abound on how UK PLC will react, with concerns in some quarters that the rise ‘could send thousands of companies to the wall’.

It’s certainly true that firms relying on cheap debt to operate could see their margins squeezed further, while the still unknown impact of Brexit simply adds to uncertainty.

At Key Finance we strongly believe that the rate rise should be viewed within context - the cost of borrowing is still at an historic low and is likely to stay there for some time to come.

We also believe that the best way to deal with uncertainty is to plan ahead. The Project-Based Lending (PBL) concept that underpins all of our products (Shopfit Funder, Software Funder, Coffee Shop Funder) is an innovative finance tool.

It works for businesses in all sectors and could provide you with the key to unlocking business growth, where the whole of your project can be funded with a single arrangement. Rates are competitive and the administrative burden of project finance management is removed.

Funding in this way means that payments made are an operating cost to the business – PBL is generally 100% allowable against taxable profits.

In addition, PBL can be written on or off balance sheet, representing a significant advantage in terms of tax efficiency.

Finally, PBL offers flexibility and gives you options at the front and back end, as well as with payment terms.

Put simply, it’s a convenient and easy way to fund the growth of your business, offering medium to long term certainly regardless of external influences.

To find out more, call us on +44 (0) 1372 888 330 or email