So, we’re still having issues with the current interest rates that keep rising. I understand why interest rates must be raised to help with inflation, but it was frustrating for a small business is our small business loans interest rates are also being raised. So, what happens is; we must fight the rise in interest rates, the rise in wages, the rise in insurance and the rise in cost of goods due to inflation all at the same time. Because of this, we have not been able to properly pay our loans and were forced to take a second mortgage out of our house. To make the next few loan payments. Things will get under control, and we can get back on the positive side or at least break even.
We are also forced to raise the cost of our product. In hopes of breaking even. ARF fear is. We will outprice the local community and our order count will drop drastically. If we don’t raise the cost of our product, then we must reduce the quality of our product, which is also hard to do. Reducing the quality will also cause customers to lose to leave. We have decided to raise the cost of the product. Stand by to see what happens.
Business Lesson Learned: Although the SBA’s interest rates are often enticing and noticeably lower than private finance when starting a business. Definitely do your research on a private banks fixed rate interest rate. At least with a fixed interest rate you can manage your profit and loss and forecast better without the fear that your interest rates are going to go from 4.0 to 11:25. Percent, which is exactly what happened.