A climate of unstable interest rates and increasingly cautious bank lending is leading many businesses to re-examine their funding options. Chris Baguley, managing director of Bridging Finance Limited, explains what's happening and why there has never been a better time for accountants to recommend short-term finance to their clients.
Over the past year, an increasing number of businesses have been taking a long hard look at their banking facilities. The trend has being been driven by three key factors:
- More restrictive banking criteria, which many believe is inhibiting their growth.
- Instability and fluctuating interest rates.
- Greater competition in the marketplace, partly driven by the arrival of more entrepreneurial foreign banks.
Although rising i...