The report suggests that overall business confidence has dropped from record-high levels in July 2014 to 43 per cent due to the fears of the global economic recovery.
Tim Hinton from Lloyds Banking Group stated: “Interest rate uncertainty is a clear concern for businesses, with the possibility that rates may start to rise in small steps before the end of 2015 and in 2016. Businesses should consider how a rise in rates might affect their long-term plans, ensuring they are prepared for potential impact on their cash flow or their customers and suppliers.”
As leading providers of bookkeeping and accounting, take a keen interest in relevant financial news. A spokesperson for Braant, the company which commissioned he survey said: “An interest rate rise is likely at some point over the next 12 months. This means that SME’s need to be aware and prepared for the change. With this knowledge in mind, businesses need to alter and adjust their financial plans in order to take the interest rate rise into consideration. The right bookkeeping and accountancy firm should be able to help SME’s to adjust their long-term plans accordingly in order prepare for the impact that interest rates could have on their cash flow.”
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