When interest rates rise, the cost of variable-rate debt climbs with them. Businesses that plan ahead can protect cash flow and avoid unwelcome surprises.
Start by mapping your debt profile: how much is fixed versus variable, and when does each facility reprice? From there, consider hedging strategies, refinancing opportunities, and adjustments to working-capital management that reduce reliance on short-term borrowing.
Rising rates also create opportunity. Idle cash can earn meaningful yield in money-market and deposit products. A proactive conversation with your banker can turn a challenging rate environment into a strategic advantage.