Is your business structured correctly for rising rates?

As interest rates continue to rise, it's important for business owners in the Northern Territory to understand their loan terms and to take action if they believe their circumstances are deteriorating. Understanding your loan terms is key to keeping your business afloat in a rising interest rate environment.

After nine (9) interest rate increases in a row, as a business owner you must act quickly if you believe your finances are worsening, so understanding the terms of your loan is essential.

You might also need to consider other financing options such as merchant cash advances or online loans, which can have interest rates ranging from 11% to 100%. These options may provide more flexibility than traditional bank loans and could be beneficial for businesses looking for short-term financing solutions. However, be aware of the pitfalls and ensure you review the associated documentation!

In addition, lawyers can assist with a review of corporate structure and re-structuring if necessary. They can provide advice on how best to structure your business for success, as well as advise on any legal implications that may arise from changes made during the review process. This is especially important when considering changes during times of increasing interest rates when it’s essential to ensure all activities remain compliant under Australian law.

Overall, businesses need to be aware of all facets of their financial situation in order to survive in today’s ever-changing landscape where rising interest rates continue to make things more difficult each year. By staying informed and acting quickly if necessary, you can ensure that your business remains financially secure despite the rising interest rates.

Would you like to know more about or have a review of the structure of your business? Please call Peter Walker on (08) 8941 6355 or email peter@bowden-mccormack.com.au