Just a perspective to share from someone trying to buy property for a small business(since most people think about it from a residential POV).
Unlike residential mortgages, corporate loans are not fixed interest rates. They are all adjustable. What in 2020 seems financially sound, becomes impossible a few years later.
I can't imagine how other companies do this, do you just make sure your business can handle 12% interest rates just incase a politician decides to give away free money for a few years?
I come from (real) engineering, so everything is just math to me. However the adjustable interest rates is quite a wrench. Do I need to assume a 15% fed reserve interest rate + the 2-4% the bank piles on? Heck, 15% might be low, you never know.
I imagine that all businesses would benefit from having some long term certainty. Maybe mid/large companies can raise money or get fixed loans, but I'm at the point where I need to use my feelings(ewwww) to make a decision.
Unlike residential mortgages, corporate loans are not fixed interest rates. They are all adjustable. What in 2020 seems financially sound, becomes impossible a few years later.
I can't imagine how other companies do this, do you just make sure your business can handle 12% interest rates just incase a politician decides to give away free money for a few years?
I come from (real) engineering, so everything is just math to me. However the adjustable interest rates is quite a wrench. Do I need to assume a 15% fed reserve interest rate + the 2-4% the bank piles on? Heck, 15% might be low, you never know.
I imagine that all businesses would benefit from having some long term certainty. Maybe mid/large companies can raise money or get fixed loans, but I'm at the point where I need to use my feelings(ewwww) to make a decision.