As small business owners await the Federal Reserve’s decision on interest rates, the potential impact on their business financing is a top concern. In the past, an inverted yield curve has been a reliable predictor of a recession, causing small businesses to suffer significant financial losses. It is therefore important for small business owners to respect history and be mindful of past events to make informed decisions in the present.

One of the most important lessons from history is the impact of high-cost financing options, such as Merchant Cash Advances (MCAs), during an economic downturn. Businesses with too much MCA debt are often the first to fall. To avoid this fate, small business owners should consider long-term, low-cost options from FDIC-insured banks that provide stability during challenging economic times.

By respecting history and having the discipline to avoid high-cost financing, small business owners can ensure their businesses are better equipped to weather economic storms. Refinancing MCA debt using FDIC bank financing or MCA Debt Restructuring is another option for businesses struggling with high-cost, MCA debt. These options can improve cash flow by lowering interest rates and reducing payments.

With capitalism, the good news and the bad news is that most everyone has equal opportunities to succeed or fail, and the outcome is largely determined by our own choices.  History has shown that small business owners who respect history and learn from past mistakes are better equipped to make informed decisions for their businesses. By avoiding high-cost financing options and exploring low-cost alternatives, small businesses can protect themselves, especially during challenging times. Remember, those who do not learn from history are doomed to repeat it, and small business owners must learn from past events to ensure a successful future.