While the FED keeps raising interest rates, we keep fixing interest rates! Here’s an example of what fixing interest rates means for our client…
Matt had just sold his logistics company and needed a new venture to keep him preoccupied. Phil, his business broker, who had just assisted in the sale of his logistics company, located this fence company in Kentucky which was absolutely killing it!
Because Matt was such a stellar borrower, fixing his interest rate for the life of the loan was easy. He received a 6% APR fixed rate for 10 years on the acquisition of the business for just under $2 million which included $250K in working capital!
This is a fantastic interest rate, even for a fixed rate, considering the rising interest environment we are currently in as a country. Every fixing rate deal may not look like this moving forward, especially when the FED has raised interest rates and will again in a few weeks.
However, what I will say is that we hold our notes and don’t have to sell our guarantees off into the marketplace like most SBA lenders. This gives us the ability to fix interest rates on the right deals.