UK business resilience to US sub-prime credit crisis

UK business resilience to US sub-prime credit crisis

Results from a survey conducted by a large high-street bank, business confidence amongst UK firms actually significantly increased in September 07.

The vast majority of firms surveyed were expecting their business activity to increase over the next year. The industrial and service sectors recorded particularly high levels of business confidence, with encouraging forecasts of business activity over the next 12 months.

Businesses in the UK still continue to borrow too. The numbers of SMEs utilising commercial mortgages, and other business finance products such as: asset financing and invoice discounting has steadily increased throughout 2007. Recent concerns over the US sub-prime market have not curbed this trend. Indeed, more commercial mortgages, providers are trading in the UK than ever before, such is the demand they need to satisfy.

What are the main advantages of a commercial mortgage?

Retain your business - raise the business finance you need without have to relinquish a percentage of the ownership of your business (as you may have to do through other channels)Capital Gain - Property rises in value. If you buy yours with the help of a business mortgage, you could financially benefit from this when you sell. Tax deductible - commercial mortgages
interest payments are tax deductible Stability - Mortgage payments are generally more desirable than rental payments as they are less prone to large, non-index linked rises. Better cash flow management - a business mortgage schedule is set out over a number of years allowing a business to better plan for the long term.

I write on behalf of General Finance