Q » How do interest rates impact corporate borrowing decisions?
09 Dec, 2025
A » Interest rates significantly influence corporate borrowing decisions as they affect the cost of debt. Higher interest rates increase borrowing costs, making financing through loans less attractive, potentially leading firms to delay expansion or seek alternative funding. Conversely, lower rates reduce costs, encouraging borrowing for investment and growth. Companies must carefully assess interest rate trends and forecasts to optimize their capital structure and financial strategy, balancing risk with potential returns.
09 Dec, 2025
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