Positioning Your Business for Success in a Low-Interest Rate Environment

There is always some uncertainty when it comes to interest rates and whether they will go up or down. Recently, the trend has been downward, and more business owners are asking us, “What can I do to position my business if interest rates keep falling”? The following are a few items to consider if interest rates are falling or about to decrease further:

Falling interest rates can have several positive effects on your small business:

1. If you need to take out loans for expansion, equipment, or operational costs, lower interest rates mean you will pay less in interest, making financing more affordable.

1. As interest rates drop, consumers often have more disposable income This can boost sales for your business – invest in marketing activities – you will see a ROI.

1. Refinancing loans or credit cards at a lower interest rate can reduce your monthly payments, improving your cash flow and allow investing in other areas of your business.

1. Invest in growth opportunities, new technology or additional staff, as the cost of financing becomes more manageable.

1. An opportunity to capture market share by investing or offering better deals to customers.