Interest Rates Are Predicted to Keep Falling in 2026 - But Should Businesses Really Wait?
- Matthew Martin
- 3 days ago
- 3 min read
Interest rates have been a dominant concern for business owners over recent years, and as we move through 2026, the conversation is shifting once again. Economic forecasts and market commentary increasingly indicate that interest rates are expected to continue falling throughout 2026.
For many businesses, this is positive news. Lower interest rates typically result in cheaper access to business finance, reduced borrowing costs, and improved cash flow management.
However, as interest rates trend downward, many business owners are asking the same question: Should we wait before applying for finance? While falling interest rates can create opportunity, they can also lead to hesitation - and in many cases, waiting may cost more than it saves.
Why Falling Interest Rates Create a “Wait-and-See” Mindset
On the surface, the logic appears straightforward:
If interest rates are expected to fall further, why not wait for a better deal?
The challenge is that interest rates are only one part of a broader business finance decision. Businesses don’t operate in isolation, and growth opportunities rarely pause while markets adjust.
Delaying business finance can result in:
Expansion plans being put on hold
Missed opportunities to purchase equipment, vehicles, or inventory
Slower growth while competitors move ahead
In practical terms, the lost revenue and delayed growth from waiting often outweigh the savings of securing a slightly lower interest rate later.
Taking Business Finance Now Doesn’t Mean Being Locked In
A common misconception among business owners is that securing finance today means committing permanently to today’s interest rates.
In reality, many modern business finance solutions offer flexibility, including the ability to:
Review finance structures as market conditions change
Refinance or reprice facilities if better options become available
Adjust funding arrangements to support future growth
By acting now, businesses are not closing doors, they are creating options. As interest rates continue to fall, those options often expand rather than disappear.
Falling Interest Rates Often Lead to Tighter Lending Conditions
Another critical factor business owners should consider is lender behaviour.
When interest rates decline, demand for business finance typically increases. As application volumes rise, lenders often respond by:
Tightening approval criteria
Reducing overall risk appetite
Becoming more selective about which businesses they support
This means that while interest rates may be lower later in the year, access to finance can become more difficult.
Businesses that secure funding earlier often avoid this bottleneck, gaining certainty and approval before lending conditions tighten.
Certainty Is a Competitive Advantage for Business Owners
Business finance is not only about cost, it is about confidence and control.
Businesses that act decisively benefit from:
Greater certainty in cash flow and budgeting
The ability to invest, hire, and grow without delay
A competitive advantage over businesses waiting for the “perfect” rate
In changing economic conditions, certainty enables faster decision-making and stronger execution.
The Bottom Line: Why Waiting for Lower Rates Can Be Risky
Falling interest rates throughout 2026 are positive news for businesses — but they should not be a reason to stand still.
Waiting for the lowest possible interest rate can lead to missed opportunities, delayed expansion, and reduced flexibility. Businesses that secure finance now can move immediately, adapt as rates continue to change, and stay ahead of competitors who choose to wait.
At Approved Finance Group, we work with business owners to structure finance solutions that support growth today while remaining flexible for tomorrow’s market conditions.
Because in business, the biggest cost is often not the interest rate —it’s the opportunity you didn’t take.
