Welcome news – RBS guarantees not to increase business finance costs

Tomorrow is Pre Budget report day in the UK, and in the midst of the economic crisis there are likely to be some significant changes to minimise the effects of the imminent recession.

We at Mercian Labels bank with the RBS Group, who today announced that they will guarantee the current lending rates and amounts to business for a year.

Fortunately we have a reasonable balance sheet and havent had short term borrowing requirements for years,  but with working capital for many businesses across the country being stretched, this is a positive step.  Lets see what the other banks do, and what tomorrow’s fiscal policy stimuli are.