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Good planning is in your interest; ADVERTORIAL.

Byline: Leigh Taylor

CURRENT economic conditions mean that business owners in the North West need to be more aware than ever of the impact that market movements could have on their business.

A key area of consideration for businesses when borrowing is the impact of changing interest rates. With the Bank of England bank rate currently at an historic low, those on floating rate repayment schemes (which track the Bank of England bank rate) may currently be paying less than they originally budgeted for.

Whilst the current low level of interest rates is a welcomed boost in difficult times, it is unlikely that interest rates will remain this low for long. As a result, budgets that are based on the current levels will see profitability squeezed as rates increase back towards their historic average, making cashflow suffer - even if the rise takes a few years.

It is therefore essential that businesses start to think about protecting themselves from future increasing interest rates that could potentially damage their profitability longer term.

At Lloyds TSB Commercial we work with our customers to help them balance the benefits of current low interest rates against the risk of future increases, suggesting appropriate risk management strategies to match their longer term objectives.

We have a variety of risk management products that can be used to tailor the interest rate that your company pays. Whether it be to fix your rate to give you absolute certainty, or to cap the amount you will pay at a level you are comfortable with, whilst allowing you to benefit from current lower interest rates.

With the Bank of England bank rate at its lowest ever level, now is a sensible time to review your company's finances. Some businesses may see this as a chance to 'lock in' at low rates, but a decision to do so requires careful consideration. A number of factors such as risk appetite, re-financing requirements, seasonality, and internal and external market factors could all impact on your business.

Our locally based relationship managers can put you in touch with our financial markets experts in the North West who can help you identify, manage and mitigate risk exposure from interest rates and other financial markets risks such as foreign exchange. You can outline your requirements and be assured of an integrated view or solution to suit your individual needs.

For more information please contact your relationship manager or visit Lloyds TSB Commercial is a trading name of Lloyds TSB Bank plc and Lloyds TSB Scotland plc and serves customers with an annual turnover of up to pounds 15M.

Authorised and regulated by the Financial Services Authority under numbers 119278 and 191240 respectively.

Licensed under the Consumer Credit Act 1974 under registration numbers 0004685 and 0198797 respectively.

We subscribe to The Lending Code; copies of the Code can be obtained from


Helping local businesses: Lloyds TSB Commerical's Leigh Taylor
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Publication:Daily Post (Liverpool, England)
Date:Nov 24, 2010
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