Rich Michaelson Magaliff, LLP Rich Michaelson Magaliff, LLP
Speak with one of our attorneys today.
TF 877.373.6811
NY 646.453.7851
Main Navigation
Real World Solutions To Real World Challenges

R3M has been voted a Best Law Firm by US News & World Report and Best Lawyers

Best Lawyers | Best Law Firms | U.S.News & World Report | 2018 Best Lawyers | Best Law Firms | U.S.News & World Report | 2019

Get Answers

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Adjustable-rate vs. fixed loan in a rising-rate business environment

At the established Manhattan business law firm of Rich Michaelson Magaliff, LLP, our deep legal team has "substantial experience covering many aspects of commercial law."

Our practiced client counsel and advocacy spans complex matters and related concerns relevant to a wide universe of transactional issues, leasing matters, dispute resolution, entity formation decisions, employment considerations and more. All of that is "familiar territory" to our attorneys.

So too is financing, which is unquestionably a core - and often recurring - focus for many of the diverse businesses that turn to us for guidance and diligent legal representation. Sound and dependable financing options buttressed by attractive terms can drive opportunity and growth. Conversely, unattractive financing outcomes can easily stall business momentum and spur commercial failure.

A recent business article on financing considerations germane to the current business environment highlights the upward trending of interest rates on business loans for commercial entities in New York and nationally. That reality has obvious relevance for every company principal.

And it breeds equally obvious questions. Should I opt for a short-term loan or longer commitment? Should I make a default decision that favors a fixed-term instrument over an adjustable-rate product?

The above overview notes the common view that a rising-rate environment logically dictates the avoidance of financing that will likely entail periodic upward adjustments that can tax company coffers.

It might not always be so simple, though, as a commentator in the cited article stresses. He notes that rising rates signal positive economic indicators generally that can propel business sales, notwithstanding an occasional upward rate bump. It just might make sense to opt for a shorter-term adjustable-rate product at a time when funding can truly jumpstart growth.

The present commercial climate is both bracing and replete with opportunities. An established business team can help an entrepreneur or company owner explore options.

No Comments

Leave a comment
Comment Information