Business Guidance

What To Do About Increasing Interest Rates

We have been saying since 2008 that you should expect interest rates to rise. Well, that time is finally here. Interest rates are not only higher today, but are forecasted to continue to rise. While there have already been increases, there are still things you can do as a business owner to mitigate the impact of higher interest rates.

Review your capital expenditure and expansion forecasts – If you’ve been holding off on any significant capital expenditures, now is a good time to lock in a long-term interest rate before further increases and while banks are aggressively seeking opportunities to finance equipment and business expansion.

Refinance existing debt – If you have any debt that will need to be refinanced and is maturing over the next 12 months, you should consider refinancing this debt now. Be sure to review your documentation for exit or penalty fees. Also, keep in mind, even if you have fees, you may be able to earn them back if you lock in a new rate in this rising interest rate environment.

Perform a financial check-up – Review your financials to ensure that you are presenting your company in the best possible light. To take advantage of this environment your banker is going to want to review your current financial condition (operations, cash flow, leverage, and projections). Being prepared is the quickest path to approval.

As the economy improves, we will continue to experience higher interests rates for some time in the future. Your local community banker is prepared to assist you in determining the best opportunity for your business. Contact a Univest Relationship Manager at 877-723-5571 to get a conversation started.


Univest Bank and Trust Co. is Member FDIC, Preferred SBA and Equal Opportunity Lender.

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