SMEs are grappling with rising interest rates – Paul Trickett from Bathgate Business Finance explores refinancing options that could offer businesses more stability
Some lenders are tackling rising interest rates by offering customers with long-term loans a penalty-free option to repay or refinance early and secure fixed rate finance.
According to Paul Trickett from Bathgate Business Finance, long-term loans are common in the legal sector, particularly to support acquisitions or buying in or out of a firm.
Many are 10-year facilities, which given rising interest rates have likely provided a financial challenge for those on variable rates.
Considering increasing interest rates, some providers have decided to offer their existing customers the option to either pay off their loans or refinance early, so they can secure a fixed term loan facility with another provider. This will allow them to better budget for monthly payments.
Paul, business development manager at Bathgate Business Finance, said: “From the current lenders’ perspectives, this kind of offer will allow them to get outstanding debts in more quickly, and foster goodwill and loyalty with customers, by offering a penalty-free option to refinance and bring stability to cash flow.
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“For customers being offered the ‘out’ represents an opportunity to review finances and secure a fixed term loan that will bring security and stability and insulate them from any further sudden rises, giving peace of mind in challenging economic times.”
Bathgate Business Finance is working with several lenders who can refinance long-term personal professional loans and commercial loans in the legal sector. To discuss your options, contact Paul Trickett on 07469 140 180 or email paul@bathgatebf.co.uk
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