Let’s answer a question or three, shall we? Hey Fletch, I know you always tout getting equipment when you need it but aren’t rates coming down soon? Wouldn’t it be better to wait? Dave P. Hi Dave, Honestly, assuming the equipment will earn you revenue, no, it is not better to wait. There are three reasons for this.… Read More »
When the federal reserve began raising interest rates in 2022 – a conventional response amid broader economic pressures from government overspending and surging energy costs, I predicted that there would be many rate increases, and in revisiting the topic every few months afterwards, I predicted higher rates would last a long time. Not to pat myself on the… Read More »
I’ve been writing about bank loan restrictions and clauses for a few weeks now. We went over blanket liens and compensating balances, and now we’re going to talk about maybe the scariest one of all: annual requalification. If you thought the bank saying “yes” when they gave you the loan was the end of them looking at your… Read More »
Next up in our bank loan restrictions comes compensating balances. And it’s something nearly all banks use when loaning a business money for equipment financing. A compensating balance is when a bank requires a business to keep a certain balance amount in an account with them. This balance amount is typically 80% of the equipment loan. The key… Read More »
It’s been a while since I talked about rates, so now is as good a time as any. First, not to pat myself on the back regarding my prediction skills, but I did say back in Feb 2023 that rates would continue to rise for a bit (they did) and then hold fast for a long time (they… Read More »