At the end of 2021, the LIBOR benchmark lenders use to calculate the interest rate for financial products will end and move to a safer more transparent benchmark rate. As LIBOR is the most common interest rate benchmark in the UK this will affect a significant number of businesses.

Any business with an existing loan or contract on LIBOR will need to be ready to switch to an alternative rate this year. This will affect any new loans from 1 April and any existing contract will need to be changed before 31 December. Banks and lenders have already started to contact businesses to discuss contracts and the new rates. 

UK Finance alongside the CBI, ACT, LMA and ICAEW, have created an introductory guide, designed specifically to help even the smallest business, or any employee not familiar with this, understand what is happening, if it affects them, what they can do, and also signpost them to the resources available for further information.