Impending Rate Hikes & Market Volatility...there is refuge in Equipment Finance
We’re not here to tell you what the markets will or won’t do after a rate increase.. But like you, we’re doing our best to follow the Fed’s confusion and the potential reaction of the market once they make a move. Although there are obvious consequences of a rate increase, there is still a lot of speculation regarding the overall impact it will have to the global economy.
This said, you’re likely of a school of thought where you either believe; 1.) Rates are going up tomorrow and it will cause a global domino effect where the markets will crash, i.e., not a rosey picture, 2.) A fed rate increase is a good thing and the markets will gracefully adjust, stabilize, and continue upward, sounds glorious, 3.) Somewhere in between, or 4.) Who cares about the fed, it's a global economy, just look at how LIBOR has been impacted recently.
No matter your position, one thing we can agree on is rates will be going up, if not tomorrow, sometime in the not so distant future. And for every US based company, large and small, this will impact their ‘buying power’ when it comes to leveraging financing for fueling growth.
Intro, Equipment Finance...
There are a myriad of benefits a well structured Equipment Finance facility will deliver, but the key point we’re making here is that it can be a very nice hedge against a fed rate increase and the volatility likely to follow.
The capital available in this quiet $1 Trillion industry (roughly 7% of the US Economy), is meant specifically for financing essential use assets (equipment and software) for businesses. The chart below references a few of the qualities present that would be very nice to have in place when a rate hike hits.
Gain more clarity re. these hedge qualities here -->