After years of historic lows, interest rates are finally on the rise. Chairman of the Federal Reserve Board Ben Bernanke has said that the Federal Reserve would begin to taper their bond-buying stimulus program this year. The central bank launched the program in 2008 to help lower long-term interest rates and stimulate economic activity.
Everyone, it seems, is talking about the historically low interest rates available today. What does this mean for your business? If you are looking to invest in your business property or equipment, it is very good news.
There are two different types of loan rates: Fixed and variable (or adjustable). With a variable-rate loan, the interest rate fluctuates along with changes in the market interest rates. This means your monthly payments will vary, either rising or falling according to current market rates.
