If you are considering financing equipment at this juncture, you may be concerned about where interest rates are headed. You may be wondering if perhaps it might be better to wait until rates drop before you take that step to finance.
Darrell R. Spence, an economist with 31 years of experience who writes for the Capital Group, states that while the next step for the Federal Reserve will most likely be to cut interest rates, it is in no rush to do so.
Spence points out that the U.S. economy continues to grow at a healthy rate despite the rises in interest rates that the Fed has made. While inflation has slowed over the past several months, it is still not near the Fed’s inflation target rate of 2%. And going from around 3% where it is now to 2% will be the tough part. There’s no need to drop rates until inflation comes closer to hitting that target.
Something to think about: If you are waiting for interest rates to drop before financing, you may have a while to wait. And while waiting, you may miss your opportunity to integrate new or used equipment into your business to grow. Consider this point: Rates are still low by historical standards, and if you are considering terms of five years (the usual terms our clients request), the average monthly payment will only be minimally higher than if you wait for an interest rate cut.
What’s important is that the equipment you’re financing helps grow your business by taking advantage of market opportunities.
Talk to us about your needs at this point. We have lending programs that can work to your benefit. Call us today at 412 262-3225 to see how we can help.
We are Acceptance Leasing and Financing Service, Inc. We are in our 32nd year of business in 2024. Established in 1992, we pride ourselves on our Certified Leasing and Financing Professional designation. We are a member of SBCA and a frequent attendee of the BCMC tradeshows. We can provide financing for any new and, regardless of age, used equipment.