Bank of England cuts base rate
The Bank of England has today (1st August 2024) cut the base interest rate down, from 5.25% to 5%.
This is the first base rate drop in over 4 years, with the rate of 5.25% having been held since August 2023.
Given the tightened cash flow seen by dental practices over the last few years, this is likely to have a positive impact for many practices.
Most healthcare business loans taken are on a variable rate, meaning that the bank’s interest margin is plus the Bank of England base interest rate. Therefore any drop to the base rate will reduce monthly loan repayments for practice owners.
This is a welcomed move for many, and a step in the right direction for the dental practice sales market, which has seen values having to be adjusted to allow for high loan repayments.
If you need help obtaining bank finance for a practice purchase, or if you are considering selling your dental practice, please call us on 01904 670820, or email sales@pfmdental.co.uk.
