Rising interest rates are back…again?!
What does this mean for your business? Perhaps you were considering purchasing equipment or expanding, and now all this news about interest rising rates has you questioning your decisions. But should you be?
Here’s the thing—businesses have been financing equipment purchases and expansions during all sorts of interest rate environments. When Maven started working with medical practices, it was common for a loan’s interest rate to be in the double digits. Business owners were still borrowing money, investing in their business, and pursuing their dreams, even while paying what seems like crazy high interest rates compared to recent times.
Considerations for Borrowing Money During Rising Interest Rates
When the cost of borrowing money is higher, business owners might be more carefully considering their plans. Perhaps you’re asking questions like:
- Do I really need that equipment?
- How will I make sure that I can generate more income from it?
- Am I sure my expansion plans will result in more profit for our business?
- How can I carefully think through these purchases and be certain they are right for our business, while also ensuring that this is the right time to be making the investment?
- And if the investment is made, how can I quickly put it to good use so that our customers can benefit and we can get a return as quickly as possible?
Maybe rising interest rates have forced you to think twice about a large purchase for your business. Maybe you’re carefully planning on how to incorporate new equipment into the business to ensure that you’re able to generate additional revenue quickly—not only to pay for it, but make money off of it.
If rising interest rates have us spending money more intentionally and carefully, is it entirely a bad thing?
For more information about planning for expansion or whether the time is right to invest in equipment for your business—reach out to our team at Maven!