Over the past several months, the US economy has been growing rapidly. Companies are rebounding from the challenges of 2020. They’re hiring more people. Service businesses like restaurants and dog-walking services are coming back. And in fields like tech and finance, bosses are asking people to return to the office.
One reason for this economic surge is that interest rates have been low. [1] In fact, for over a year, the Fed kept the interest rate at an unusually low number. This was designed to stimulate borrowing, building, and investment in businesses. Now, the Fed’s rate is not exactly what an individual or business will be quoted when they apply for a loan, but it can be a good indicator.
That’s because it’s the interest rate banks pay when they loan money to one another on a short-term basis.[1] Knowing it gives the public a general idea of what it costs to borrow money at a given moment.[1] In the coming months, the government will end some of its stimulus measures.[2] Because of this, interest rate is expected to shift upwards.[2] That means that now may be a good time to seek financing. In time, it’s likely that borrowing will get more expensive for everyone.[2]
Of course, bank loans aren’t the right fit for every situation, no matter the interest rate.[3] For small businesses, there can be better solutions. Banks and credit unions require large down payments. They finance only new equipment, and they don’t help cover costs like labor or installation.[3] Many entrepreneurs want to be light on their feet. It’s hard for them to be bogged down with these extra expenses, when there’s an alternative like equipment financing available.
At Alliance Leasing, we’re able to do things differently.[3] Our financing covers those soft costs. If you’re interested in used equipment in good condition, we can finance that. We also have a much simpler application. Our turnaround time for lending decisions is usually just one day, not the weeks-long approval processes some financial institutions use.[3]
So if you’re in the market for new equipment, contact us today. It’s the right time, and we have the right process for you. You’ll be surprised at how much equipment we can finance: conveyor belts, construction equipment, ovens, signage and even business software. We’ve been doing this for over 30 years. We have a great track record of helping businesses grow across the nation. We’d love to help you, too.
Sources:
[1]https://www.cnbc.com/2021/04/28/the-fed-keeps-rates-near-zero-heres-how-you-can-benefit.html
[2]https://www.foxbusiness.com/personal-finance/fed-chair-powell-inflation-surge-interest-rates