I’ll make this brief.
Interest rates are going up for corporate borrowers and will test the viability of many. Although you know I’ve been impressed with how corporate America has withstood all the challenges of recent years, it has not yet faced a sustained period of rising interest rates. This will be its biggest test yet.
We should at least prepare to see interest coverage violations and lots of negotiating to resolve them. Either that or the borrower begins to search for a more flexible lender. But borrower beware because a flexible lender may not be compatible, and that’s important.
At Capital Access Partners, we firmly believe that businesses seeking capital of any kind should pay maximum attention to compatibility with their capital providers. Optimal Pairing™ = Optimal Results.
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