Australian small businesses now face the prospect of a Melbourne Cup Day rate rise, after headline inflation in the September quarter came in above expectations. That would take Australia’s official cash rate to 4.35%, up from 4.1% and on the back of a 4-percentage point increase since May last year.
It means that businesses are likely to continue to grapple with the unprecedented rise in interest rates and resulting higher loan repayments, as well as staffing, rental, and supply chain pressures.
To assist businesses feeling the pressure, Falanga & Co have partnered with Lending Association, one of Australia’s largest independent financial services companies, to offer a no-cost interest rate review service.
Lending Association have over 60 banks and lenders on their panel, and are best placed to review interest rates on home loans, commercial loans, and asset finance to ensure you’re meeting your financial goals and objectives.
The finance health check
Lending Association can review your current lending policy and provide a second opinion, ensuring you’re on the right rate for your situation. They’ll also take into account any upcoming financial needs.
They work with a wide range of clients, including those wanting to maximise their borrowing capacity, upgrade, or get a foot into the market. They’ll also finalise pre-approval to give you peace of mind ahead of any purchase.
Falanga & Co Partner, Samuel Falanga, said: “We’ve been really impressed with how Lending Association have assisted many of our clients to reduce their monthly repayments, and we’re excited to continue to grow that partnership.”
“The rising rate environment can be exceptionally challenging for small businesses, and getting a rate review is just one step that business owners should take to withstand a higher rate environment.”
Weathering the rate storm
Falanga & Co encourages small business owners struggling with higher rates to contact us and take stock of their position, so we can review your business plan and cash flow.
It’s essential that your business plan is updated to account for increasing costs, and investment decisions are reconsidered in light of a higher cost of servicing capital.
Cash flow projections should also be revised. Your accountant is best placed to consider where cash flow might be improved to limit borrowing, as well as review pricing and resourcing strategies.
Has your business plan been updated?
If you’re worried about how a Cup Day rate rise might impact your business, book a complimentary consultation with the Lending Association team here.
Falanga & Co are also on hand to review your business plan and discuss how you might improve your cash flow position as borrowing costs continue to increase.
Comments are closed.