The Joys of Interest Rates...

It is nearly the end of August- how and when did this happen?!

This year has absolutely flown by for all of us here at Willow Project Management Services. We have had a cracking few months since we have gone live with new clients approaching us on a regular basis. WPMS is an unusual company as we do not only offer a range of project management services but we also offer e-marketing, content marketing and blog writing services.... as you can imagine this doesn't leave us a lot of free time!

Our clients are the backbone of our business and as such we want all of our clients, existing and potential, to feel like that they are always receiving the best client care possible (so far so good!!).

Once we step out of our busy little bubble we are constantly assessing the trends that we see evolving around us...

In the wider world we are still seeing the effects of ongoing Brexit negotiations, the aftermath of parliamentary figures stepping down here in the UK and importantly for a small business the rise of the interest rate from 0.5% to 0.75%. The Bank of England have declared that with the strengthening economy and the UK's stable employment levels that the 0.25% increase will be initiated to effectively manage inflation. From mortgages to debts to savings we are all affected in some way. Typically we see that as rates increase, so does the consumers unwillingness to spend their hard earned cash- and who can blame them? For businesses that provide non- essentials these are often the hardest hit as they are the first things eliminated. With many businesses being involved with loans we also see an impact here- those small loans suddenly turn it larger payments for longer periods....

However, we are a company that deals with change for a living so lets look at what we as businesses can do to ensure that this rate increase affects us all positively...

Those small loans mentioned previously haven't been freely given in recent years so with the higher rate banks and lenders are more likely to loan. Research, research, research. Look into what would be the most suited to your business, the size of your business and also its turnover- be realistic!

SAVINGS! The real reason that the majority of us get up and go to work in the morning. We need the cold, hard cash. Whilst historically the financial sector has not been quick to pass on the benefits of the base rate increase, they do exist (promise!) So whilst the rates have increased lets do our homework, ensure that the business uses the most efficient accounts possible and put what we can away for that rainy day. And whilst the results might not be dramatic, just remember that every penny counts!

From a business perspective- we need to look at the wider implications. The pound. Not only does the UK start to want to save more with this higher interest rate, but it also encourages foreign entities to invest in our banks and building societies. However, earlier on I mentioned the "B" word.... with Brexit proceeding... sort of.... the depreciation of the pound has been evident. Now it is not all doom and gloom ladies and gentleman, the depreciation has been evident but what goes down must come up (we hope) and with the official Brexit ending date now published as 29th March 2019 it is fast approaching (really fast approaching if this year is anything to go by) and once we have gone through that initial phase predictions are that things will start to settle.

So now I have bored you all to death, I am off to do my own research. And to make a to do list. And to make sure that I don't forget to step back and enjoy these first few months of the start of hopefully something great.

Happy Research!