Translate this site

enzh-CNzh-TW

Raeside Chisholm Solicitors

The directors of Raeside Chisholm are experienced solicitors who enjoy a deserved reputation in Glasgow and beyond for personal attention allied to a commitment to outstanding levels of quality legal services. For enquiries, please contact us on 0141 248 3456.

Interest Rate Rise May Cause Problems for Businesses

New research has revealed that as many as 79,000 UK businesses (4%) would be unable to repay their debts if interest rates were to rise by even a small amount. This is almost four times the 20,000 businesses that reported being in this situation in September 2016.

The study, by insolvency and restructuring trade body R3, also found that 96,000 firms (5%) were just paying interest on their debts.

“UK firms have faced a challenging 2016 and early 2017: the sharp fall in the pound has made things difficult for importers, while a rising National Living Wage and the roll-out of pensions auto-enrolment have added to businesses’ running costs,” commented Andrew Tate, spokesperson for R3.

“Only paying the interest on debts is not necessarily a sign that a business is in distress: it may be that a company is taking advantage of low rates to invest in its operations or assets,” he added. “But only repaying the interest is also a common characteristic of a ‘zombie business’ – a business only able to keep going because of an ultra-low cost of borrowing and with little chance of survival.”

“The research shows that there are tens of thousands of firms currently walking a very tight line,” he said. “Rising inflation may also lead to a double-whammy for struggling businesses: it may increase the chance of the Bank of England raising interest rates, and it would undermine the consumer spending that has driven the economy over the last year.”

Contact Us

For expert legal advice on these issues, or other areas of commercial law, then contact our specialist commercial lawyers today.

Government Publishes Information Sharing Bill
Judge Awards Divorce Settlement of £453 Million

Online Enquiry

  1. Name(*)
    Please let us know your name.
  2. Email(*)
    Please let us know your email address.
  3. Daytime Tel. No.
    Please enter your daytime telephone number.
  4. Subject(*)
    Please write a subject for your message.
  1. Message(*)
    Please let us know your message.
  2. Please tick below for antispam verification (*)
    Invalid Input

Latest News

06 October 2017
Estate Agency
Trade body Homes for Scotland has called on the Scottish Government to take action to tackle a lack of activity at the higher end of the housing ladder. ...
26 September 2017
Commercial
The UK Government recently published a paper setting out its position on cross-border civil judicial cooperation with the EU post-Brexit.
19 September 2017
Estate Agency
New research from Prudential has revealed that over 3.9 million over-55s plan to downsize to a cheaper property later in life, and convenience is the main motivator for this move, not the releasing of equity. ...
13 September 2017
Family Law
It is generally acknowledged that the majority of domestic violence victims are female, but this is not always the case and there is growing recognition that a significant number of men can also regularly find themselves subjected to violence and abu...
27 August 2017
Commercial
A new report from the Federation of Small Businesses (FSB) has revealed that small businesses still face many obstacles when attempting to secure public sector contracts. ...
18 August 2017
Estate Agency
New research by Bank of Scotland has revealed that average house prices close to Scottish Premiership football grounds have increased by 20% over the last ten years. ...

Latest Tweets

Connect with us

     

Recent Client Comments