For businesses borrowing from banks, there is cause for concern across the nation as rising interest rates make repaying loans a tough ask.
Unlike fixed-rate mortgages, business loans are subject to changes in rates, reflecting the market’s current position.
This means that The Bank of England’s move to raise interest rates from 1.75% to 2.25% in September has prompted a worrying response, with many suggesting UK may already be in a recession.
Insight Data’s Operations Manager, Alex Tremlett, said: “It is a worrying move that may spook a lot of businesses, with many having to re-evaluate their business plan.
“With an increasing number of loans having been taken due to the pandemic, many companies have an obligation to pay back loans at a higher rate, affecting day-to-day spending, operations and cash flow.”
“Prepare for all eventualities”
With the future of the market uncertain, Alex added that investing in the right areas is vital in prolonging the profitability and sustainability of a business.
“At Insight Data we specialise in the fenestration industry, and we’ve seen first-hand how the number of installers has declined by 7.6% in just five years.
“It’s more important than ever that companies have a strong and reliable sales and marketing strategy to generate a steady stream of leads and enquiries.”
This is not only a topic that affects businesses, with consumer spending expected to drop significantly due to the move. As consumers have less disposable income due to higher payments on loans and mortgages, spending decreases.
“A mix of higher interest rates and a drop in revenue could combine for the perfect storm,” added Alex.
“One of the best ways to overcome uncertainty is to be prepared for all eventualities, even those that may benefit the sector further down the line.
“Accessing the most up-to-date and relevant market research is key, and with the right prospecting database in place, a company is guaranteed to get results.”
Using Salestracker to secure future prospects
Insight Data is one of the UK’s leading business-to-business data providers who specialise in the fenestration and wider construction sector. Its unique database enables companies to create target the audiences that want their product, meaning marketing campaigns run at a much more successful rate.
Saving money, time and labour, Salestracker has over 700 users, including some of the UK’s industry-leading building product suppliers.
Insight has a team of dedicated researchers that keep our database full of relevant details on each company, ensuring that no clients are left chasing outdated personnel. By specialising in niche sectors, we can continuously update, verify, and manage our prospect database more often than any other marketing data provider.
