Early this month, the Federal Reserve announced an increase in interest rates to combat rising inflation costs. The second raise this year, economists anticipate several more to take place into 2023.
What it Means
Rising interest rates impact the entire U.S. economy. Consumers pay more for common loans like mortgages and automobile purchases. Businesses pay more for capital expenses, like expanding operations, and – yes – equipment financing. As a result, people can become more cautious about borrowing and spending, the price of goods and services decreases, and inflation settles.
Actions to Take
As interest rates rise, equipment financing rates often follow suit. This doesn’t mean you have to stop growing your business. If an equipment purchase is in your near future, you can often get ahead of the rising interest rates by locking in your rate today, while still making your purchase in a few months. By solidifying a rate now, if interest rates change in the next 30-60 days, your agreed upon rate will remain at the same, low rate.
How We Help
Priority One Financial Services partners with a variety of lenders, offering several different competitive programs. We will work with lenders to find an option that fits your best interest and saves you in the long run. Give us a call and we’ll get started on finding the right rate for you today so you can prepare for tomorrow.