It’s a long way from Dallas, Texas to Washington DC where the Federal Reserve’s Board Members meet and announce interest rates at the highest level. Chairman Jerome Powell, along with five other board members meet eight times a year to set interest rates, influence money supply in the economy and make purchases to boost certain markets. Unquestionably, The Federal Reserve is the most powerful economic institution in America.
But how do these meetings impact small business owners? How do decisions at the top, affect businesses at the ground level?
Dallas Business Journal: “Marcos Silva is the founder of Richardson-based Champion Equipment Finance, which provides financing to small businesses for equipment.”
Dallas Business Journal Staff Writer Holden Wilen tackled this topic when he spoke with Champion Equipment Finance Founder Marcos Silva for a piece titled, ‘A lot of people are shocked right now’: Founder of Richardson equipment financier discusses impact of soaring interest rates.
Interest rates are higher than they were a year ago, but equipment prices are down which means good purchases are available in the market. Equipment and financial markets are rarely on the same page – they can be a lot like a seesaw. Interest rates are up, and equipment prices are down which means that good payments are available.
So, what should business owners do? Is now a good time to buy, or is it wise to wait? Credit analysts forecast more hikes are coming, and equipment prices are likely on the same path. Everyone is always looking for the market’s “sweet spot,” but it’s important to focus on the payment and determine whether or not it makes sense for the business. Look at all the factors in the deal – not just the interest rates.
A Dallas Business Journal subscription is required, the article in its entirety can be read here: https://www.bizjournals.com/dallas/news/2023/06/28/champion-equipment-finance-interest-rates.html