Understanding Interest Rates: A Key Factor in Business Growth – NADF

Interest rates can often feel like a daunting topic for entrepreneurs, especially for Indigenous business owners looking to expand, acquire inventory, or secure operating capital. However, understanding how interest rates work and how they impact your business can help you make informed financial decisions that contribute to long-term success.

In a recent episode of The Prosperity Podcast, Brian Davey, CEO of NADF, breaks down the essential aspects of interest rates and their significance for Indigenous entrepreneurs, particularly those operating off-reserve. Here are some key takeaways from the episode to help you navigate loans and interest payments effectively.

1. Interest Rates Are a Cost of Doing Business

When securing a business loan, the interest rate represents the cost of borrowing. Rather than seeing it as a financial burden, it should be viewed as a necessary investment in the growth and sustainability of your business. Whether you are financing an expansion, purchasing equipment, or improving cash flow, interest rates are simply an additional cost that should be factored into your financial planning.