Flexibility is Key in Times of Rising Interest Rates and Supply Chain Challenges
February 23, 2022
Interest rates are on the rise. Although they are increasing from historically low levels, any increase can elicit concern among developers, investors and business owners who see the cost of their planned projects going up before their eyes.
While no one can predict how high interest rates will rise, First Independent Bank offers some peace of mind to those who have concerns about an increase in the cost of financing.
Depending on the type of loan and a client’s credit history, the experienced bankers at First Independent Bank have the flexibility to provide customized solutions that can help minimize interest rate increases while the loan is being finalized and the closing process completed — typically between 45 and 90 days.
Jim DeVolld, managing director, commercial banking, says entities looking to refinance projects later this year should be talking with a banker now to minimize the impact of interest rate increases.
Another concern for any small business is the supply chain issue that impacts almost every industry in Nevada.
These challenges have delayed projects resulting in increased costs. First Independent Bank has worked with several existing clients to modify their loans based on the unforeseen issues associated with the supply chain.
For example, HVAC equipment or appliances that are weeks or months behind schedule can prevent a building from receiving a certificate of occupancy. This delay affects the homeowner or lessee who plans to move into the building. It also means costs for the lessor who expected to use lease payments to cover expenses including debt service. Your banker can determine what options are available based on your specific circumstances.
As with all business challenges, let your banker know sooner than later about any interruptions that could ultimately affect your loan. At First Independent Bank, our experienced bankers have the knowledge, tools and ability to help small businesses weather many short-term disruptions. The first step is starting that discussion.