What does 2024 look like if you want to raise business finance?

Asks Andy Page, Head of Commercial Finance at Seico Group

No two years are the same, but despite that 2023 felt different to most. We started the year with a hangover, not just from the festive period but mainly caused by the fallout from the Truss administration. The Bank of England raised the base rate steadily for the first three quarters, before pausing for breath on 3rd August. It may not feel like it, but this means that the rate has stood still for four months.

The pressure on rates is now downward – at the time of writing the five-year rate is below 4%, still nowhere near the rates of 2020 but those rates were never going to be the ‘new normal’. My view is that business people have come to accept that the days of ultra-low rates are behind us and there is a general sigh of relief that we are now hearing predictions of B of E rate cuts potentially as early as March.

So, perhaps, those entrepreneurs who held off making investment decisions and property deals last year will decide that now is the time to move. This will usually involve the raising of finance and the positive news is that banks have money to lend. In fact, the number of commercial lenders who are in the market has continued to grow, even in the face of the challenges we faced in the last 18 months.

I am seeing keener rates in the market and a willingness to lend to all sectors, particularly to property-based operators. If banks don’t lend money, they cannot turn a profit and from what I can see they have set themselves sizeable growth targets for the year – this means that money is there to lend to customers.

If you are putting plans together and will have a need to borrow money I’d welcome the chance to discuss this with you.

Please don’t be shy about getting in touch on 01273
778888 or email: Andrew@seicogroup.com

www.seicogroup.com