The impact on a business of higher interest rates

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The impact on a business of higher interest rates People may borrow less because it costs more money to pay back the loan It costs the business more money to pay back any loans So the business needs to find more money to pay back its loans The business decides not to invest in new equipment So people buy fewer consumer goods So businesses sell fewer products The business becomes less competitive The business may make less profit

The impact on a business of lower interest rates People may borrow more because it costs less money to pay back the loan It costs the business less money to pay back any loans So the business needs to find less money to pay back its loans The business decides to invest in new equipment So people buy more consumer goods So businesses sell more products The business becomes more competitive The business may make more profit