For those concerned that interest rate hikes will continue, the Fixed Income team at the Capital Group believe the last hike of 0.25% in early May will most likely be its last of the cycle. Many economists share that perception.
After 10 consecutive hikes by the Fed, inflation is cooling at 4.9% over the prior year in April, providing the Federal Reserve with what it was hoping to achieve.
For business owners, the industry-wide perception that interest rates will be flattening provides a greater comfort level when it comes to budgeting for new or used equipment. The urge to “jump in” and finance now, before rates jump in the near future, can stress out any owner.
Over the last few months, we at Acceptance Leasing and Financing have not noticed a slowdown in the number of applications and approvals. Although rates were climbing slowly, demand for products in the marketplace remained strong (as evidenced by strong employment numbers, and its inverse statistic, low unemployment).
Our clients met the demand with newer, updated equipment. The challenge many of them faced is long delivery lead times, and large down payments necessary to start an order. Our pre-funding to the vendor saved them a large cash outlay, and we were able to remove the risk of higher future rates by locking in the agreement with the initial deposit outlay.
We hope that as you plan for the months and years ahead, you’ll consider allowing us to assist you with your financing needs.
We have a number of financing programs to fit the needs of every type of borrower, from start-ups, to seasonal businesses, to well-established industry leaders.
We are Acceptance Leasing and Financing Service, located near Pittsburgh, PA. We’re in our 31st year of business. 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 tradeshow, Acceptance Leasing and Financing Service, Inc. knows the equipment of the component manufacturing industry and is ready to assist you with your financing needs.