In the wake of consecutive rate rises and higher inflationary pressure from the rising cost of doing business, it is important to understand all of your options as a business owner and consider the range of hedging tools on offer by many banks and lenders.
To assist business owners our debt advisory specialists have prepared key questions business owners should be considering to best mitigate risk and future-proof their business.
In consideration of the questions above there are a number of traditional interest risk mitigation strategies which can provide a level of protection against rising interest rates including:
- Fixed rate loans;
- Caps and collars; and
- A combination of any of the above with variable rates.
There are positives and negatives to each of the facilities mentioned, depending on your risk appetite. Understanding your business and its requirements to continue trading profitably is the most important step. In recent years we have seen a raft of specialist facilities arise, these can be considered in conjunction with traditional banking facilities to focus on areas of concern within your business.
We’re also seeing a rise of alternate finance options in the working capital and trade finance space across banks and non bank lenders. While interest rates and fees may vary from institution to institution, turnaround times and functionality can lead to access to prompt access to funding.
How we can help
Mazars has extensive experience in debt advisory. Our financial advisory experts take a business first approach to all debt advisory engagements, understanding your business needs and ultimately providing structured solutions to futureproof your business.
If you require assistance or want to know more, please contact your usual Mazars advisor or alternatively our financial advisory experts via the form below or on:
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