February saw some important economic data published with the UK’s headline inflation rate remaining at 4% whilst Base Rate was held at 5.25% by the Bank of England.
On the face of it, these 2 key indicators remaining unchanged might not appear the most exciting of news, both measures provide some useful insights as to where the UK economy may be heading with the ongoing impacts of a period of high inflation and increased borrowing costs continuing to be felt by businesses throughout the country.
Inflation continues to be, stubbornly, well above the Bank of England’s target figure of 2%, however, there is a growing expectation that the rate will fall towards this target in the months ahead, after food prices started falling for the first time in 2 years. With inflation having reached double digits in recent months, further falls will be welcomed by businesses and individuals alike.
Likewise, there is a general expectation that the Base Rate has peaked with the next move now widely expected to be a reduction. This is not expected to happen imminently but the series of increases to Base Rate may now be over, which is great news for SMEs who may need to access debt finance.
Newable works with thousands of SMEs each year, and more recently, we have witnessed these businesses have encountering rising production and staff costs, along with additional expenses due to trading risks. Consequently, their profit margins have been under pressure.
Newable offers support to exporting UK companies through our UK Export Finance-backed cash flow facilities. Due to our support, some of these businesses have responded to the current economic challenges by exploring new markets and export opportunities, driving growth even in difficult times.
Looking ahead to 2024, we aim to extend our cash-flow support to more UK SME exporters. As economic conditions hopefully improve, Newable remains committed to empowering ambitious businesses with flexible financial solutions for their future growth.
About Newable
For over 4 decades, Newable has been supporting thousands of businesses every year through the provision of Money, Advice and Workspace. An employee-owned business with a commitment to creating positive impact in all that we do, our team are on hand to help your business today.
Newable’s Export Finance is a UK Export Finance supported product that gives exporting SMEs flexible working capital to help them capture opportunities and respond quickly to challenges.
We provide working capital finance facilities of up to £300k for exporters to help them win contracts, fulfil orders and support growth.
Find out how we can help you and your business navigate the challenges of exporting