- Economic Uncertainty & Consumer Spending Shifts – Inflation is at 9%, wages aren’t keeping up, and consumer spending declines indicate potential economic downturns affecting all industries.
- Fed Interest Rate Hikes – Since April 2022, the Fed has implemented the steepest rate hikes since 1994, with interest rates expected to more than double by year-end.
- Strategic Financial Preparation – Small businesses are locking in fixed-rate financing, refinancing high-interest debt, and securing business lines of credit to remain stable during economic uncertainty.
Are we headed towards a recession?
Although there isn't consensus on whether or not the US economy is in a recession, one thing’s for sure…things are different. Consumer spending is shifting and this means that even if you don’t feel it now…negative effects will trickle down to every company, regardless of industry and size. You may have already been feeling the squeeze of stagflation and lower consumer spending.
See how Walmart, the nation’s top retailer, is seeing the spending shift. Consumer spending, usually the ‘canary in the coalmine’, is showing us that: wages are not keeping up with inflation, which is up 9%. A recession is coming, and it doesn’t matter if your customers are consumers or businesses, it is all connected.
The Fed raised rates at the end of July…as inflation skyrockets. Since April of this year the Fed has taken steps to curb inflation, including the steepest rate hike since 1994!
In fact, the Fed predicts that today's rates will more than double by the end of 2022. That's why we want to make sure you understand your options for dealing with higher rates.
Some small business owners are taking these smart steps:
- Locking in new fixed-rate financing or refinancing
- Paying down their high-interest rate accounts
Our business lines of credit are designed to help businesses remain stable, especially during hard economic times. Line of Credit Depot leverages our relationships with local and national small business-friendly banks, to give our clients the best possible access to capital. Is your business ready for what could be coming? The best way that my clients stay prepared is by having access to affordable credit. Make sure that your company is prepared and apply for a Business Line of Credit today to secure your money before the end of the year!
