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Interest rises? have they disappeared?

The Bank of England announced today that interest rates would stay as they were until 2013. People with high debt would take years to get their debt under control.

The greatest risk to the UK’s economy would come from the Euro debt crisis, which is becoming more and more troubled by the day.

There is an incredible in balance in the Global Debt issue. The USA, Greece and other European countries look to the UK to help the out in any way, although our economy is no where near stable. How can we possibly afford to help other countries when our own land has problems such as the recent riots in the news.  Its going to take years to get the UK economy to a balanced mostly due to those who have taken out loans and owe a suitable amount of debt.

Although this seems like a slightly unnerving crisis, Small to medium businesses seem to be booming, on the flip side of the coin this is a triumph and should be celebrated, out of negativity comes positivity, this is mainly due to large companies making staff redundant and using sole traders and small businesses to complete work based on a contract rather than a yearly salary.

Companies are able to get around lending loops using factoring and invoice discounting, which leaves them in a good position, due to the fact they are only borrowing the amount of money they will actually earn in their invoices.

So, it may seem to some, a negative outcome from the Bank Of England press conference today, but for others this is welcome news. We’ve got to keep on trucking and look to the future, small and medium businesses are the cogs that contribute to the UK’s economy, and as long as they continue to flourish, its a positive effect.

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