The upheaval in the financial sector in the last 18 months confirms that no one can predict the future. However news regarding the economy does appear to more optimistic, most people believe interest rates will start to rise sometime in the future. There appears to be a window of opportunity to take advantage of the lowest interest rates in history.
Lenders have increased their margin's, the days of 1% over base appear to be long gone. Even with the increased margins of today's lending , typically 2.0% - 2.5% over base/libor, the actual cost of borrowing money is less due to the lowest ever base/libor rates.
Lenders are undoubtedly cautious regarding new proposals for lending, requiring a lot more detailed information. They clearly want and indeed need to lend. The healthcare sector is a preferred market for lending.
The two largest costs to any care home operator are likely to be wages and finance. Minimum wage increases in October this year will increase the wage costs in many care homes. Regarding the other major cost, here is a window of opportunity to look at possibly by reducing the finance costs on your Care Home or indeed Homes.
The details of your current borrowing will dictate how much or indeed if any savings are available. Chandler & Co can very quickly advise you as to what savings may be available. Do not miss the opportunity of taking advantage of these historically low rates.
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