Find more posts like this:
- Community
- 1970s
- 1980s
- balance sheets
- better chance
- borrowing money
- business loan
- business owners
- cost of borrowing
- cost of debt
- economic growth
- income statements
- inflation
- interest rates
- last period
- mortgage rates
- profit margins
- quarter business
- restrictive covenants
- risk of failure
- transaction costs
My post yesterday got a comment questioning why business owners are so worried about inflation and its affect on debt.
During periods of high inflation, many small business cannot keep pace with higher costs. Their profit margins will shrink as costs go up more quickly than they can increase prices. We are already seeing evidence of this.
