LIBOR
Businesses with large loan requirements can benefit from the opportunity to link their borrowing to the London InterBank Offered Rate (LIBOR) (the rate at which banks borrow from each other). The principal appeal of a LIBOR-linked loan is that it offers increased flexibility to manage short-term interest rate risk. So for example, if the interest rate should suddenly go up, the rate at which you borrowed will stay the same.
LIBOR loans allow you to fix your interest rates for short periods (typically one, three or six months). Rates are based on the LIBOR relating to the chosen period and interest is payable on the maturity of each period. The LIBOR can also be linked to longer-term borrowing, such as asset finance.
LIBOR lending is:
- easy to arrange
- flexible – you have a choice of repayment period from one to six months
- geared to your business – terms can be tailored to your requirements.
For more information on LIBOR loans, please contact your Relationship Manager or call the Corporate Treasury Sales Team on 0845 727 0845.
