Stef’s market overview – August 2024

August has been unusually active for brokers and lenders this year, with strong competition on rates and a surge in finance opportunities. As we approach the end of summer, it’s an ideal time to secure financing—especially with the Bank of England’s recent rate cut and the potential economic impact of a US recession on the horizon. Stef provides a brief overview of the month below:

• August is traditionally a slower month for brokers and lenders due to the summer holidays, but this year has been different. Post-election, there’s been a noticeable rise in invoice finance opportunities and commercial mortgages. Lenders are competing on rates, so there are plenty of deals available in the market.
• The BoE finally reduced its base rate to 5% on 1 August.  While it’s a small reduction, clients will see the benefit across several funding, products particularly invoice discounting.
• Concerns about a US recession are growing. The saying goes: “When America sneezes, the rest of the world catches a cold.” If you’re thinking about raising finance, now might be a good time to act, as our economy could become volatile if the US enters a recession. Don’t wait—secure your financing now.
• Speaking of waiting… every year, I remind our distribution, retail, and wholesale clients to start gearing up for Christmas around this time (yes, Christmas!). For the last six years, I’ve handled an ‘urgent’ funding request on 20 December. While I’m always grateful, planning ahead is key—lenders often start their holidays by then! Don’t leave it too late.