Interest Rates and the Effect on Small Businesses

Play the percentages and win:

Know how interest rates can affect your business – and use them to your advantage

Most business owners agree that the economy is doing well. You see it in sales and you may want to expand or upgrade your facility to gain an edge vs. competitors down the street.

Smart move. Particularly since “the Fed” (Federal Reserve System) has more aggressively increased interest rates over the past year. The trend is likely to continue into 2020.

Minor “Fed” up-ticks multiply impact on you

While Fed increases do little to impact customer purchases at your store, they certainly impact equipment expansion and upgrade plans. Specifically impacted is the Cost of Capital – funds you need for fuel pumps or POS (point of sale) merchandising systems, digital price signs, EMV upgrade kits and more.

New products and upgrades boost income while enhancing the “consumer experience,” helping draw new customers and keep current clients coming back. However, while access to capital is vital, paying interest eats into cash flow.*

The good news is that you can take advantage of rising interest rates by using a finance plan that locks in a rate for the term of the loan. PLUS, a lender who has established partnerships with oil companies, equipment manufacturers and distributors can work to your advantage! Their industry-savvy insights can help you find the best purchase/financing.

The sooner, the better as interest rates rise

The “writing is on the wall.” Interest rates will continue to go up, not down. Now’s the time to explore your store’s equipment purchasing needs, and to find a financial partner to help you make it happen. If you wait just one year, it could easily cost you an extra 1% in cost of capital for the term of the financing.

Find more help on equipment purchasing, leasing and interest rates. Visit www.patcapfinance.com or call 404-255-1770.

Also see related article “Financing Equipment Purchases vs. Paying Cash”