Bank of England Raise Interest Rates
As you may be aware the Bank of England has raised base rates today by 0.25% to 0.5%. This may have an impact on businesses as their existing borrowing cost from their bank will most likely rise.
The current average borrowing cost for companies is anywhere between 2% and 4%, but this may soon be affected by an increase in the base rate. The increase might be in the form of increased cost on your existing overdrafts, loans, factoring or invoice discounting facilities you have with your high street bank or factoring provider. These facilities look at the you as a company when they determine the risk and therefore the price you pay for these facilities.
Obillex early payment schemes are a unique cheaper alternative as our risk is with the council and not you as a supplier. This means that the cost to taking an early payment on your approved invoices is a lower cost alternative (0.16% of the invoice value) than if you finance your business via an overdraft, loans, factoring or invoice discounting facilities. An example of the cost for taking a 20 day early payment is as follows:
20/365 x 3% x £100 = £0.16p
Rodor Housing and Support Ltd
“When we joined the Early Payment Scheme we found it extremely helpful with cash-flow. Knowing we were getting paid faster improved our own internal financial management processes. The scheme has been a big success for us”
Dennis Eagle Ltd
“We joined the scheme as getting paid quickly is important towards managing the business and cash-flow. We are happy with the service Obillex provide”
Touchwood Private Hire Ltd
“Since joining up, we are very happy financially, especially as cost is minute. We are able to pay employees without any difficulties and receive payment within 5 days. The early payment scheme is definitely something I would recommend”
If you have any questions please call Obillex (0121 469 0100) or email email@example.com.