Fed To Raise Interest Rates

We’ve posted many times to take advantage of historically low interest rates before it’s too late. And now that time has come to fruition, as The Federal Reserve finally raised interest rates from a range of 0% to 0.25% to a range of .25% to .5%.

Funding Well Capital is your #1 business financing source, working with clients of all credits by offering the lowest possible rates with fast approvals. Over time, we’ve fought hard to provide the lowest interest rates possible, saving your business money while providing excellent customer service. In light of this recent news, we promise to do the same.

What Do Rising Interest Rates Mean For You?interest_rates

Speaking in broad strokes (as each individual and company are different), buyers of large equipment, houses, vehicles, etc., will have to pay more in interest over the term of a loan. For savers, over time you’ll see higher returns once larger banks replenish their coffers. If you have money in the stock market, prepare for a wild ride.

Was This Rate Hike Out of Nowhere?

Based upon much speculation, experts predicted interest rates would increase sooner rather than later. But there was no telltale sign of exactly when, until Fed Chairwoman Janet Yellen announced the increase. The likelihood of a rate hike was not a matter of ‘if’, but ‘when’.

Why Did Interest Rates Increase?

In short, the economy is healthy enough to adjust borrowing costs to levels consistent with historical norms. Many factors go into why this decision was made. For one, increasing the interest rate will likely help in hindering the future inflation acceleration.

Why Were Interest Rates Lower in The First Place?

During the crisis of 2008, the Fed put its benchmark interest rate as close as it could to zero to stimulate the economy and increase borrowing.

When Will This Affect Me?

Over time, the interest rate will gradually increase, meaning big buyers need not fear — yet. The number less consequential in the short term, but rather the indication that interest rates are on the rise means it’s only going to grow over time.

We advise you to buy as soon as you can, as it’s important to save your business money in the long term to lock in a low rate. The time is still right to borrow, and Funding Well Capital is staffed with experts from all corners of the finance world. We’re excited to hear from you!

"I don’t try to jump over 7-foot hurdles: I look for 1-foot hurdles that I can step over."
~ Warren Buffet ~
Chairman & CEO of Berkshire Hathaway

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