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Is 3% base rate better than 2% over base rate?

Published 05/09/2017 07:24:16

It sounds like a silly question, doesn’t it? Instinctively you might say 2% is cheaper than 3% and therefore this must be the better deal. But what happens if the first deal has a repayment programme of 15 years and the second deal has a repayment programme of 10 years? The impact on monthly cashflow is quite substantial. If your business has a focus on cashflow because you are expanding and growing and you need to fund your future then the first deal might work out much better for you.

In short, the question should be not what is the better deal but what is the right deal for your business and that is where your professional advisors come into play. Of course, we would like you to work with ASC because we believe that our expertise is to your benefit, but if not just make sure that you work with a specialist commercial finance broker who has a good track record and enjoys a good reputation.

If you like the way we think then you will like the way we work.

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