Navigating Inflation and Rising Interest Rates: How Fixed-Rate Financing Can Help Your Business Stay Ahead

Inflation is a topic that has been top-of-mind for economists, policymakers, and consumers alike over the past three years, as consumer prices have increased at their fastest pace in over 40 years. Inflation is defined as the rate at which the general level of prices for goods and services is rising, and consequently, purchasing power is decreasing.

The factors that contribute to inflation are complex, and they can vary depending on the economy in question. In the case of the United States, some of the primary drivers of inflation have been supply chain disruptions, labor shortages, and increased / pent-up demand for goods and services.

The Federal Reserve has been monitoring inflation closely and has already taken measures to contain it. In March 2023, the Federal Open Market Committee (FOMC) announced another quarter-point increase in the federal funds rate, bringing the Prime Rate to 8.00%. This was the ninth time the Federal Reserve has raised rates since the COVID-19 pandemic began, and they have signaled that more increases could be on the way. This has caused some concern among those who fear that excessively high interest rates will lead to a rapid slowdown in economic growth. However, there are also those who believe that continued interest rate increases are still necessary to combat inflation.

While businesses are concerned about the potential impact of rising interest rates on their operations, it is still important for these businesses to make equipment / capital investments to stay ahead of their competition.

Working with a trusted financial partner can help you:

• Preserve Your Cash: By financing, you can preserve your cash reserves for other business expenses or emergencies while keeping your purchasing power intact, even with inflation.
• Mitigate Risk: Our fixed-rate financing will protect your business from the potential volatility of variable interest rates. Though the Fed has signaled that more increases could be on the way, you can rest assured that your interest rate will remain the same throughout the life of the loan.
• Stay Ahead of the Game: You can stay ahead of the competition by acquiring the latest equipment, which can help improve productivity and efficiency, allowing you to maintain a competitive edge in a challenging economic environment.

Don’t let inflation and rising interest rates hold you back from reaching your business goals. Contact US Capital today to learn more about how we can help you grow your business while preserving your financial stability.