Could You Get a Better Rate? Why Now Might Be the Time to Review Your Business Finance

The headline today is that the Bank of England has cut interest rates from 4.25% to 4%. This is good news for anyone with business funding in place.

Although a relatively minor change by itself, this is the latest in a series of cuts – and it may be the nudge you need to think about what finance you have in place and whether you could get a better rate if you refinanced.

This is very much dependant on when that funding was taken out, but if it was within the last two years, it may be worth considering.

While you’re thinking about refinancing, it may also be a good time to look at the payment terms you have and how they fit into your cashflow. If you consolidate, could you reduce the amount you’re repaying each month? Would that take some of the stress off, and allow you to get on with other things?

Perhaps you might also consider whether you need any additional funding. If you’re struggling at certain points in the month or year – or feel that you have a project that could help with expansion – now could be a good time to look at this alongside your current rate.

If your business is in a better place, and your credit rating has improved, it may be that your rate could change significantly. That might allow you to pay off the facilities more quickly – or open up more funding options, helping you choose a lender that better fits your needs.

Alex Bond, from capitalise, has shared a case study below:

How a £200,000 Loan Transformed Business Operations

The Challenge

In winter 2024, a UK-based company specialising in artificial sports pitch installations faced severe supply chain delays. They were dependent on importing astro turfing materials from China, with delivery times of 9–11 weeks. This forced them to quote long lead times to customers, resulting in lost contracts and reduced competitiveness.

The Solution

The business owner sought advice from their accountant advisor at a national small business membership organisation. Through this connection, they were introduced to Capitalise and paired with a dedicated funding specialist. With expert support, they secured a £200,000 working capital loan.

The Outcome

With the loan, the business was able to:

• Purchase turf stock in advance of the busy season.
• Offer faster installation timelines and gain a competitive edge.
• Negotiate better prices with suppliers by paying upfront.
• Position itself to win larger commercial contracts.

Key Impact

The funding allowed the company to shift from reactive to proactive operations, boosting both growth and customer satisfaction.

 

Do you recognise your business in any of the situations mentioned? 

If you do, and you feel you’d like to explore some finance options or simply get more information, please get in touch.  Sometimes a quick chat can make a world of difference.