• Home
  • History
  • News
  • Business
    • Business News
    • Business Mag
  • Sport
    • Football
    • NAFC
    • Cricket
    • Durham Wildcats
    • American Football
    • Baseball
    • Rugby
    • Youth Football
  • Features
    • Blog
    • Picture Galleries
  • Community
    • A.T People
    • Services Directory
  • Video
  • Contact
  • Advertise
Aycliffe Today
Aycliffe Today
  • Home
  • History
  • News
  • Business
    • Business News
      ‘Topping out’ celebrated at multi-million pound Aycliffe development

      ‘Topping out’ celebrated at multi-million pound Aycliffe development

      NC Group strengthens board with new appointment

      NC Group strengthens board with new appointment

      How Aspire programme is lifting the lid of Aycliffe Business Park for our young people

      How Aspire programme is lifting the lid of Aycliffe Business Park for our young people

      🌍 Promote your business on a national stage!

      🌍 Promote your business on a national stage!

    • Business Mag
      Aycliffe Business: Issue 72

      Aycliffe Business: Issue 72

      Aycliffe Business: Issue 71

      Aycliffe Business: Issue 71

      Aycliffe Business: Issue 70

      Aycliffe Business: Issue 70

      Aycliffe Business: Issue 69

      Aycliffe Business: Issue 69

  • Sport
    • Football
      Aycliffe Youthy round-up

      Aycliffe Youthy round-up

      Aycliffe stay third with 4-0 away win

      Aycliffe stay third with 4-0 away win

      Aycliffe go top with four wins from first four games

      Aycliffe go top with four wins from first four games

      Unbeaten start for Sports Club

      Unbeaten start for Sports Club

    • NAFC
      New arrivals as Newton Aycliffe FC prepare for 2025-26

      New arrivals as Newton Aycliffe FC prepare for 2025-26

      Aycliffe FC celebrate record season with club awards night

      Aycliffe FC celebrate record season with club awards night

      Aycliffe narrowly miss out on play-off place – but achieve record league finish

      Aycliffe narrowly miss out on play-off place – but achieve record league finish

      Aycliffe’s play-off push on track – last home game Easter Monday!

      Aycliffe’s play-off push on track – last home game Easter Monday!

    • Cricket
      Aycliffe Cricket round-up

      Aycliffe Cricket round-up

      Aycliffe Cricket round-up

      Aycliffe Cricket round-up

      Aycliffe Cricket round-up

      Aycliffe Cricket round-up

      Captain Chris chalks up 750 not out for Aycliffe

      Captain Chris chalks up 750 not out for Aycliffe

    • Durham Wildcats
      WILDCATS FIGHTBACK TO SECURE CUP WIN

      WILDCATS FIGHTBACK TO SECURE CUP WIN

      WOLVES EDGE IT AGAINST WILDCATS

      WOLVES EDGE IT AGAINST WILDCATS

      DURHAM WILDCATS 73, GLASGOW ROCKS 99

      DURHAM WILDCATS 73, GLASGOW ROCKS 99

      WILDCATS SLAY LIONS AGAIN

      WILDCATS SLAY LIONS AGAIN

    • American Football
      WARRIORS BEAT AMERICAN HIGH SCHOOL

      WARRIORS BEAT AMERICAN HIGH SCHOOL

      WARRIORS START SEASON IN STYLE!

      WARRIORS START SEASON IN STYLE!

      WOODHAM WARRIORS VICTORIOUS

      WOODHAM WARRIORS VICTORIOUS

      WARRIORS COACH TO TRAIN GB SQUAD

      WARRIORS COACH TO TRAIN GB SQUAD

    • Baseball
      Aycliffe Cricket round-up

      Aycliffe Cricket round-up

      COUNCILLORS 'PITCH' FOR LOCAL SPORTS CLUB!

      COUNCILLORS 'PITCH' FOR LOCAL SPORTS CLUB!

      SPARTANS UP FOR TOP AWARD

      SPARTANS UP FOR TOP AWARD

      NEWTON AYCLIFFE SPARTANS AT WOODHAM

      NEWTON AYCLIFFE SPARTANS AT WOODHAM

    • Rugby
      Aycliffe fall to heavy defeat against league leaders

      Aycliffe fall to heavy defeat against league leaders

      Aycliffe notch up another loss in local derby

      Aycliffe notch up another loss in local derby

      Rugby: Aycliffe in bottom two after Whitley Bay defeat

      Rugby: Aycliffe in bottom two after Whitley Bay defeat

      Aycliffe return to winning ways with hard-fought victory over Bishop

      Aycliffe return to winning ways with hard-fought victory over Bishop

    • Youth Football
      Aycliffe Juniors round-up

      Aycliffe Juniors round-up

      Aycliffe Juniors round-up

      Aycliffe Juniors round-up

      Newton Aycliffe Juniors round-up

      Newton Aycliffe Juniors round-up

      Aycliffe Juniors round-up

      Aycliffe Juniors round-up

  • Features
    • Blog
      Covid-19 crisis update from your MP

      Covid-19 crisis update from your MP

      ‘Now we must move forward’ says MP

      ‘Now we must move forward’ says MP

      Business Advice: Cash Flow

      Business Advice: Cash Flow

      The Aycliffe Blue Blog

      The Aycliffe Blue Blog

    • Picture Galleries
      Picture Gallery: Duke of Kent visits Ebac

      Picture Gallery: Duke of Kent visits Ebac

      PICTURES: Hitachi Opening Ceremony

      PICTURES: Hitachi Opening Ceremony

      PICTURES: ROF 59 in progress

      PICTURES: ROF 59 in progress

      PICTURES: Ayclife dancers in national finals

      PICTURES: Ayclife dancers in national finals

  • Community
    • A.T People
      Spring 2015

      Spring 2015

      December 2014

      December 2014

      Aug - Sept 2014

      Aug - Sept 2014

    • Services Directory
  • Video
  • Contact
  • Advertise
  • Follow
    • Facebook
    • Twitter
    • Youtube
Advice: Interest rate protection for businesses
Home
Business

Advice: Interest rate protection for businesses

June 3rd, 2016 Martin Walker Business 0 comments 1627

top banner

Mark Whitaker from Aycliffe firm Commercial Expert brings some useful financial advice…

Large corporate businesses have been using IRP for many years to help with planning.

But, more recently, banks started making this available at a lower borrowing level to smaller, less sophisticated borrowers.

Whilst this has caused some issues (as reported in the press) it is right, at times, for a borrower to protect his cash flow using IRP.

There are a few things to consider:

• Firstly, there is no such thing as a fantastic deal…the client is merely buying a market expectation of what is likely to happen with interest rates.

• If a business has a “pain threshold” at which interest costs become critical for the continuance of the business, then IRP is something which should be considered.

For example, a property investment company:
• £1.5m portfolio, net rent £75k p.a.
• £1m borrowing, 3% above base rate – interest cost £35k p.a.
• Interest currently comfortably met
• Base rate rises to 5%, increasing interest paid to 8%.
• Interest cost now £80k and the business can’t cover interest.
• Be aware of possible break costs if lending is repaid early
• Take advice from your professional advisors. Ensure you understand what you are getting into.
• There are specialist firms who can advise on hedges and overview deals being offered. If debt is significant, such advice maybe worth considering.
• If IRP is taken up, the risk of interest rate fluctuations is removed and the bank may reflect this is a slightly reduced margin.

Mark Whitaker
Advisory board member
Commercial Expert
www.commercialexpert.co.uk

 

top banner

Share it!

Facebook Twitter Google+ LinkedIn Pinterest
Next article Gym members inspired by Emily trek 22 miles for charity
Previous article Aycliffe runners enjoy race success

Related News

‘Topping out’ celebrated at multi-million pound Aycliffe development Business
June 27th, 2025

‘Topping out’ celebrated at multi-million pound Aycliffe development

NC Group strengthens board with new appointment Business
June 24th, 2025

NC Group strengthens board with new appointment

How Aspire programme is lifting the lid of Aycliffe Business Park for our young people Business
June 19th, 2025

How Aspire programme is lifting the lid of Aycliffe Business Park for our young people

LATEST VIDEO

This week on A.T

Jul 4th 2:45 PM
Community

Aycliffe students visit Knife Angel on photography trip

Jul 4th 10:14 AM
News

Palestine Action targets Aycliffe firm in double attack

Jul 3rd 2:41 PM
Community

Grammy-nominated Country star to play exclusive Aycliffe show

Jul 2nd 12:52 PM
Sport

New arrivals as Newton Aycliffe FC prepare for 2025-26

Jul 2nd 9:12 AM
Community

Consultation proposed on changes to council tax support in County Durham

Jul 1st 11:15 AM
News

Consultation launched for new County Durham Plan

Jun 30th 6:16 PM
Sport

Aycliffe Cricket round-up

Jun 27th 12:42 PM
Business

‘Topping out’ celebrated at multi-million pound Aycliffe development

Jun 26th 11:39 AM
Community

College students lend a hand in revitalising Pioneering Care Centre

Jun 25th 10:18 AM
News

Council committed to supporting Armed Forces

Recommend
Follow @AycliffeToday
  • Home
  • History
  • News
  • Business
  • Sport
  • Features
  • Community
  • Video
  • Contact
  • Advertise
  • Back to top
© Aycliffe Today 2019. All rights reserved.
Developed by Thrive

Get our latest news direct to your inbox every Friday - subscribe to our free e-newsletter today.

Subscribe Now