On May 4th, the Federal Reserve Bank raised its benchmark interest rate for the second time this year. It was its biggest increase since 2000. The Fed raised rates by half a percentage point, and indicated that further increases would follow throughout the year. Its next increase is poised to take place at its June meeting.
The enemy is inflation. And while many economists believe that inflation has peaked at 8.5% in March, the Fed is taking no chances. The Fed made this comment: “The American economy is very strong and well positioned to handle tighter monetary policy.” In other words, the economy can handle more rate hikes.
What does all this mean for you?
The economy is strong, so demand for products continues. But as the year goes on, it will become more expensive to finance equipment to satisfy the demand that’s out there.
The wise choice is to lock in rates now, before they increase.
Asset-based lending has the advantage of locking in the rate at the time of approval, and it stays fixed until maturity! You have the advantage of knowing what your payment will be, month after month, plus, you have no cumbersome or time-consuming financial reporting to do. Once the financing is approved, NO ADDITIONAL paperwork is required.
Consider saving by financing today. There are a number of programs available to assist every type of borrower, from start-ups to well-established businesses.
We work closely with you to obtain the best rates with the best terms. Call us at 412 262-3225.
We are Acceptance Leasing and Financing Service. We’re proud to be celebrating our 30th anniversary in business this year. Established in 1992, we pride ourselves on our Certified Leasing and Financing Professional designation. A member of SBCA and a frequent attendee of the BCMC tradeshows, Acceptance Leasing and Financing Service, Inc. knows the equipment of the component manufacturing industry and is ready to assist you with your financing needs.