With the recent announcement from the Bank of England on 7 August 2025 on cutting interest rates from 4.25% to 4.00% have you considered the impact on your business & finances?
Below we have briefly outlined what we believe are some of the more important impacts.
Reduced costs of borrowing – this is probably the most obvious impact of them all. The lowering of interest rates will directly affect the rates on any loans, giving lower and more favourable rates. The impact will not only affect any loans you may be looking to take out, but also any existing loans that aren’t on a fix rate or term.
Increased access to credit – following on from the above the lower loan interest rates can open access to more options when considering possible financing.
Improved cashflow – a lower interest rate means lower payments, which in turn means less money leaving your business. The net effect of this is an improvement in cash flow, which can used for reinvestment, advertising and a multitude of other options to help push your business forward.
Economic Growth – this is an impact that many not be as obvious or occur to many business owners. The benefits of lower interest rates also flow through to individuals, with mortgage and general loan payments decreasing from what people may have been paying previously. The net effect of this is that people have more money freed up for spending, which your business can capitalise on.
Get in contact with us to discuss how you can best benefit from the reduced interest rates, and to help with any growth plans.
