With inflation proving more persistent than many expected, and with rising fuel costs expected to further impact on inflation, the likelihood of further interest rate rises is becoming harder for businesses to ignore.
For many, borrowing costs that were once manageable are quickly becoming a material line item in the P&L. Now is the time to take a proactive approach - review your current banking arrangements, understand your exposure to rising rates, and ensure your funding structure is still fit for purpose in a higher-for-longer rate environment.
Beyond pricing, flexibility matters just as much as cost. Volatility across markets means that rigid facilities and tight covenants can quickly become constraints on growth or even day-to-day operations. Businesses should be asking whether their current banking partners are providing the right level of support, headroom, and adaptability to navigate uncertainty.
A strong banking strategy isn’t just about reacting to rate movements - it’s about building resilience. If you haven’t reviewed your facilities, covenants, and overall banking structure recently, now is the time to do so!
Contact HTL Corporate Advisory to help you navigate what can be a complex banking landscape.
