AM Online

Keith Parry calls for a cut in the cost of borrowing

Most businesses prefer to borrow against base rate, but some might reduce costs by borrowing against the Libor rate and utilising the hedging opportunities that are available, fixed into medium or long-term rates.That’s according to Keith Parry, of Barclays Corporate, a speaker at the AM Financial Management Conference in Reading on November 18. 

Base rate and Libor rate – the London inter-bank offer rate, at which banks raise their short-term liquidity – normally track fairly closely. But with liquidity being squeezed, Libor is more expensive. 

“In this market you will only get base rate borrowing on overdrafts,” said Parry.

At the conference, Parry will share ways to reduce the cost of borrowing and tips for improving the relationship with the bank.

The AM Financial Management Conference, sponsored by Grant Thornton, will help finance directors, dealership accountants and other senior managers with responsibility for financial management gain best practice guidelines and profit-boosting ideas to adapt to their own operations.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment

Comments

No comments have been made yet.