As the owner of a small business, it is a good idea to keep up with news about interest rates — even when the news is not great. While the rise in interest rates is designed to help curb inflation, it can also mean that taking out a loan can cost more, which in turn may negatively impact your small business.

To help plan for a successful 2023, despite the rise in interest rates, consider the following suggestions:

Assess Your Loans

If you are currently paying off a balance on a business credit card, the amount you are paying for interest will probably increase. Many credit cards have a variable interest rate, so as the Federal Reserve raises interest rates, so will Visa and MasterCard. The same is true for regular small business loans that came with a variable rate. As soon as possible, go through all of your loans and determine if any will be affected by the rise in interest rates.

Look Over Your Business Budget

Unfortunately, the rise in interest rates often leads to decreased consumer spending. Shoppers are hesitant to incur higher payments when buying on credit, so they will often delay purchasing things that will involve a credit card or loan. Even if you sell primarily affordable items, you should still start 2023 with an audit of your business budget. If sales slow down for a while, you want to be sure you have enough cash to continue operations.

Look for areas where you can trim back expenses as much as you can; for instance, you might find that you can get by with fewer or more basic office supplies and hold a company luncheon once a quarter instead of once a month.

Look Into a Flexible Loan

Here’s some great news: not all small business loans come with variable interest rates. If you would like to avoid credit card loans or you would like to get a cash advance to help you get through any slow times during 2023, you definitely have options.

For instance, Zinch provides small companies with business loans that are fast and secure. The Zinch Flex option features flexible payment terms that are based on how much revenue your small business is generating. It also offers loans for businesses with no credit, so if you recently launched your company, you might be able to qualify for the small business financing you need.

Stay in Close Contact with Your Loan Officer and Accountant

When times are challenging, your loan officer and accountant can be great resources for you and your small business. They may have weathered times of high-interest rates before and can provide you with valuable perspective and advice as 2023 begins.

Check-in with these professionals regularly, communicating any concerns and goals for your company.

You Will Get Through This

Over time, the rise in interest rates should have its desired effect. Inflation will eventually stabilize, and shoppers will once again be ready to spend their hard-earned dollars. Until this time comes, look over your current loans and see about switching to a flexible type of small business loan. Additionally, scrutinize your business budget and keep your loan officer and accountant in the loop. This way, your small business will start 2023 stronger than ever.