Use interest rates reprieve to reduce your small business debt | #eBiz Wires | Lee Broomfield

BizWires-on-BizRadio-600x250.jpg

The South African Reserve Bank’s (SARB) decision to hold interest rates provides a necessary reprieve to small businesses servicing debt. This is according to Lee Bromfield, CEO of Core Lending at FNB Business.  lee bromfield

“Even though the decision to hold interest rates comes with a cautionary, it provides small businesses a small window to potentially make ground in reducing debt before the next monetary policy meeting. The objective should be to reduce it as much as possible to prevent falling behind in light of a potential rise in interest rates,” he said.

Recently, the South African small business sector received a vote of confidence when the government established a Ministry of Small Business Development. The move arguably positions small business sector as one of the catalysts to the country’s economic growth.

Shortly after the good news, the need to urgently boost small business was highlighted by lackluster Gross Domestic Product numbers released by Statistics South Africa (Stats SA). Even though economic analysts had predicted less than desirable GDP numbers, the Stats SA findings have certainly raised concerns about the future of the country’s economy, as well as the outlook of vulnerable sectors, of which small business is one.

debt

Currently, there are no immediate signs of an imminent economic resurgence as inflation continues to rise, increasing the likelihood of a rate hike in the near future. The Reserve Bank has already cautioned that rising inflation is posing a serious challenge to an attempt to keep interest rates low.

“The only option at this stage is to ‘tighten the belt’ by containing costs and cutting unnecessary debt. Getting rid of needless debt within a short period of time should be a key priority for any small business,” concludes Bromfield. fnb

To download the podcast on “Use interest rates reprieve to reduce your small business debt https://soundcloud.com/fnbsa/lee-bromfield-reduce-small-business-debt-through-interest-rate-reprieve-podcast

 

About eBizRadio

eBizRadio is a live multi- platformed social media service providing an online forum to the business community for holding conversations on the key issues related to specific businesses as well as availing a space for cross-business collaboration in response to key issues affecting the world of business. The place to go if you want to know about business and lifestyle
Don't be shellfish...Share on Reddit
Reddit
0Tweet about this on Twitter
Twitter
Share on Facebook
Facebook
0Email this to someone
email
Share on LinkedIn
Linkedin
eBizRadio

eBizRadio

eBizRadio is a live multi- platformed social media service providing an online forum to the business community for holding conversations on the key issues related to specific businesses as well as availing a space for cross-business collaboration in response to key issues affecting the world of business. The place to go if you want to know about business and lifestyle

scroll to top

Login

Please enter the correct answer: *


Register | Lost your password?