In Hamlet Act 1, scene 3, 75-77 Polonius provides this counseling to his son Laertes.  So we know that Polonius didn’t own a small business in today’s banking environment.  It’s fairly certain that the Fed is going to lower interest rates soon by at least a quarter of a point, on top of the already historically low interest rates that we have today.  One factor affecting the Fed’s decision is that China’s second quarter economic growth decelerated to the slowest growth in 27.  And since China is a major buyer of US goods a weak economy in China can slow growth in some sectors of the US economy.   

In March I wrote a post about no more interest rate hikes.  I never thought that instead rates would be coming back down.  So I will say again that if the Fed does go ahead and make the cut there will be plenty of time to look at your company and its future to see whether a loan of some kind would help your company grow and increase its profitability.  One way lower interest rates would help if nothing else would be that if you have credit card debt that has been used for your business you might be able to pay it off and increase your cash flow because of the substantially lower payments on a bank loan.  Taking on debt is obviously risky and not always wise.  But if it would help you grow and profit it might be worth serious consideration.

I wonder what Polonius would say today.

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