Compare borrowing terms before the renewal becomes urgent

The best time to review a facility is while the business still has enough time to choose.

A renewal can look straightforward when the lender is familiar and the interest rate appears reasonable. I would still want management to understand whether the terms continue to fit the business. A facility arranged for one stage of growth may be less suitable after a change in customers, investment plans or cash collection.

The Bank of England’s September business intelligence described competition for viable borrowers alongside continuing selectivity. That provides useful context for a review. It does not tell an individual company what it can borrow or at what price.

Start by agreeing the funding requirement and the period for which it is needed. Compare the existing facility with credible alternatives using the same assumptions. Include fees, repayment conditions, security and covenants. Explain any conditions that could restrict the decisions directors expect to make.

A cheaper rate can be outweighed by arrangement costs or an unsuitable repayment profile. Equally, staying with a familiar lender should be a considered decision rather than the result of leaving the review too late.

The finance team or adviser can prepare the comparison and help directors understand the implications. Management should decide what fits the business, taking specialist lending or legal advice where necessary.

Before the next renewal, give one person responsibility for bringing that comparison to the board while there is still time to act.

Source and context

Bank of England Agents summary published 11 September 2026.

Published 11 September 2026, drawing on intelligence gathered over six weeks to mid-August. This is qualitative business intelligence, not an offer of finance or an assessment of any company’s eligibility. The facility comparison above is Accendo’s interpretation.

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