Interest Rate Hike and Issue for Small Business

Debt is the number-one financial issue in Canada today, and things are about to get more urgent for mortgage holders and business owners who have significant debt. 

In a special stop in Winnipeg this week, the Bank of Canada has indicated that the economy appears to be stabilizing after the 2008 financial crisis, leaving many to wonder when the Bank will increase the bank rate. The concern is that even the slightest increase could hurt those who have depended on low-interest credit.

In an article by the CBC which cites a recent Statistics Canada report, SMEs represent 97% of the businesses in Canada, contribute 30% of their native province’s GDP and provide 70% of private employment (source: CBC, 2016). The article also suggested that SMEs often have up-front costs that would not be recouped if interest rates were increased. This could mean a loss of jobs, a decline in productivity and increased prices for consumers. It also could result in unmanageable debt that cause some SMEs to fail completely.

As a financial advisor with specialized debt and cashflow management knowledge, you can provide your small to medium-sized business clients with the guidance they need. With the designations of Distinguished Financial Advisor-Bookkeeping Services Specialist™ and Master Financial Advisor-Retirement and Estate Services Specialist,™ you’ll be able to help your clients manage the potential of an interest rate increase as well as any potential resulting debt increase.

Debt is the number-one financial issue in Canada today. At the end of the second quarter in 2016, the average Canadian had a debt-to-disposable-income ratio of 167.5% - the highest of the G7 countries. This course will help students to advise their clients on what debt is and how to use it properly; and to enhance their ability to manage debt and cash flow to accumulate wealth for the future. It is most important to understand what terminal debt is and how to reduce it as early as possible.

Click here to learn more about this program and to register.

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