In this series, we’re discussing how to inflation proof your business.
With interest rates at all-time lows, company debt has surged. If inflation begins to rise, your debt could begin costing you significantly more when the Federal Reserve begins fighting inflation with higher interest rates.
My very first, and last, small business loan was at 18% interest. That experience taught me a valuable lesson. Avoid debt at all costs.
Proverbs 22 says, “Do not be one who shakes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you.”
For those who have debt, now is the time to work on an aggressive plan of debt reduction. Otherwise, your interest expense could dramatically impact your profitability.
