When U.S. market interest rates are low, deciding to finance equipment is a breeze. Why wouldn’t you want to get better equipment for your business, especially when qualifying for equipment financing is so easy? High-quality equipment is the lifeblood of any business, driving financial growth and improving your work output.

Things get trickier when interest rates start to rise around the country. This puts pressure on small businesses in many ways, both because of loan payments and the effects of interest on everyday credit card purchases for business needs.

The good news is that there are solutions. You just need to take more time analyzing your options so you get the best terms possible. This blog covers several tips to help you make a smart decision.

Focus on the Value For Your Business

It’s important to take an objective look at financing. View your business’s needs from outside the box, as it were. Even when interest rates are comparatively higher than in the last few years, they may still be a good deal for business owners.

How can you tell if proposed interest rates are bad or good? Focus on your company’s profits versus its expenses. If interest payments would negatively affect your company’s financial health or cash flow, then the loan is a poor choice at the moment.

On the other hand, if you see that equipment improvements would generate more income or allow you to double your workload, the benefits of the loan may outweigh the higher interest rate. As long as your cash flow can deal comfortably with the required monthly payments, fussing over the bottom line for interest may not be necessary. You have to spend money to make money, as they say.

Find a Friendly, Trustworthy Lender

Some lenders look to take advantage of rising interest rates to profit at the expense of their clients. Trustworthy lenders shouldn’t take this point of view. Sure, every lender needs to make money, but they should go out of their way to help their clients remain profitable at the same time. In other words, a good lender stays by your company’s side for the long term instead of trying to make a quick buck.

A good sign is when equipment financing companies have been in business for many years, perhaps decades. When they have a good reputation with other small businesses, you know that lenders do their best to work with your company for reasonable payments.

Mai Capital offers comprehensive equipment loans and leasing packages with little to no down payments. Contact our offices today to get the equipment your business needs.