The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
Material published by BBA prior to 1st July 2017 is still available on this website.
From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.x
You’re probably already well aware of the way credit cards work. Just like a consumer credit card, the business version lets you make a purchase and repay the card issuer later.
Interest is charged on a monthly basis, calculated by taking the Annual Percentage Rate (APR) and dividing it into twelve.
Your business will receive regular statements detailing purchases, how much you owe and how much interest is being charged. As long as you have a balance, you’ll be expected to make regular monthly repayments. A minimum amount will be required, although you can always pay off more than that if you’re in a position to do so. Doing that obviously means you’ll end up paying less interest.
Interest may also be added to the amount you have to repay if you do not pay the balance off in full by the date on the credit card statement. If you fail to make your payment, you’ll be charged a higher interest rate and possibly a late payment fee, which varies from bank to bank and will be outlined in your credit card terms and conditions.
Any outstanding balance on your card simply rolls over into the next month although you might need to pay the minimum amount shown on the statement.
Used responsibly, a credit card can be very useful, providing the flexibility to spread out the cost of a purchase. Always keep an eye on your balance to ensure your repayments remain affordable.
The Financial Reporting Council (FRC) has been looking at how best to rationalise some of the audit guidelines in place by better integrating the guidance into the auditing standards themselves. Read More
Mike Conroy, BBA, Executive Director, Corporate and Commercial Banking said: “The first quarter of this year saw an upturn in applications for loans and overdrafts from SMEs, although volumes were Read More
Ian Jordan, Chair of the BBA’s Northern Ireland committee, said of the latest data: “The first quarter of the year saw an increased number of SME loan applications, leading to Read More