The asset based finance industry has been growing at an impressive rate in recent years and Brexit will do little to put the brakes on that growth as uncertainty about the economy weighs heavy on business owners’ minds.
It is now more important than ever that businesses plan finances in preparation for an uncertain future. It is also understandable that many will be cutting back on investment in new staff and acquisitions until the impact of Brexit on the economy becomes a bit more clear.
The immediate impact of Brexit on businesses is for now confined to sentiment. This sentiment may well snowball into a new recession that affects everyone. If one business reduces its investment, then it is inevitable that suppliers will be affected.
For cautious business owners, now may be a good time to look at asset based finance which can help fund new equipment purchases when liquidity needs to be preserved.
The costs for businesses that buy raw materials outside the UK will find that their margins will become more and more squeezed with each drop in the value of sterling. While the pound’s fall in value will benefit exports, it will also push up inflation. Let’s keep our fingers crossed that it will all turn out okay in the end!