What a no-deal Brexit means for UK companies
As commercial funding specialists, we explore what a no-deal Brexit means for UK companies...and how we’re here to help you navigate an uncertain future.
A blow to the financial markets
It’s becoming increasingly possible that the UK will leave the European Union without an agreement in place. In the event of a no-deal Brexit it’s predicted that the financial markets will plummet, and we could see a sharp fall in UK company share prices. US investment bank, Morgan Stanley, has warned that the FTSE 250 (which tracks the value of the UK’s largest 250 companies outside of the FTSE 100) could fall by as much as 10%.
The pound fell against the dollar on Friday, after it was announced by the Prime Minister that a no-deal Brexit was likely. If the UK leaves the EU without an agreement in place, the pound will likely continue to fall. The Bank of England might respond to a no-deal departure with negative interest rates, in order to cushion the economic fallout from predicted disruption at UK ports. This could see share prices in big UK banks fall by up to 20%.
We’re here to help
Failure to agree a deal before the end of the Brexit transition period could cause disruption for customers of UK and EU banks. As a broker, we will continue to liaise with banks so that commercial borrowers don’t have to. This should help to limit any disruption to the businesses we work with and provide reassurance during this period of predicted turbulence.
No matter the outcome, we are here to offer help and advice on the changing situation. If you’re worried about the impact a no-deal Brexit could have on your business, we can help you with any queries or concerns you might have.
FC Funding is one of the leading commercial brokers and commercial mortgage lenders. With years of experience and a vast network of industry contacts, we create bespoke packages to suit your specific needs and get you the best deal available. To get started, contact us today on 01202 937880 and we’ll be happy to discuss your case.