What the 2016 Federal Funds Rate Increase Means for Business Owners

hosted by: David Mariano, Director and head

of the firm’s Buy-Side advisory practice

What the 2016 Federal Funds Rate Increase Means for Business Owners

The Federal Reserve raised interest rates .25% in December 2016. As a result, there could be both positive and negative effects to a business owner’s bottom line.

For our first episode of 2017, we sit down with Rebecca White, Director and head of the Capital Raising practice at Western Reserve Partners, to discuss the Federal interest rate increase, what it says about the economy and how it could impact your business.

Key questions in this episode:

* What does it mean for the economy when the Federal Reserve raises interest rates?

* What are the positive effects to my bottom line?

* Are there any negative effects to businesses when the Fed raises interest rates?

* How do rate increases trickle down to a private business owner?

* How does the increased interest rate effect my business if I don’t have any debt on my balance sheet (at 07:46)?

* Which kinds of businesses are more affected by a rate increase?

* Will it be easier to borrow money now?

Key points in this episode:

* What the Fed uses to determine an interest rate increase.

* What to do if you have a variable interest rate bank loan.

* Prime Rate vs. LIBOR, and what it means for your business.

* How to take a pro-active stance and better manage your risks in a cyclical business.

* It’s not all bad news!

* What to keep in mind if you plan to add debt to your balance sheet in the coming months (at 12:55).

Resources mentioned in this podcast

* Click here for access to training and templates

Listen to Fully Invested below: