Understanding Interest Rates for Business Owners When managing a business's finances, interest rates are often misunderstood as being beyond an entrepreneur's control.
However, grasping how interest rates work and their impact on the company can be the difference between profit and loss. Interest rates are the cost of borrowing money from lenders such as banks or investors.
As a business owner, you likely interact with interest rates in various ways – taking on debt, investing in assets, or providing financing options to customers.