The upcoming elections in the United States are more contentious than usual and every day we see stories about tight races and accusations made against one candidate or another. Whatever your political views, there’s no question that elections can have a strong impact on the economy. This is especially important if you apply for a business loan.
How Elections Affect the Economy
While there’s always a relationship between politics and the economy, it’s not always one that’s easy to predict. For one thing, the economy not only responds to actual policies but also how people feel about these policies. For example, if the media widely reports that a certain policy is going to cause a spike in unemployment this can set off a wave of panic that can contribute to an economic downturn.
Elections are often pivotal moments for the economy. After a significant election, the stock market tends to react, either positively or negatively. Similarly, interest rates may go up or down in response to the outcome. The latter is obviously important if you’re thinking about applying for a loan. Depending on which way you think the election will go, you might be better off applying for a business loan now or after Election Day.
Will Current Economic Trends Continue?
If we consider current policies, the Federal Reserve has recently begun a trend of raising interest rates, which are currently at a four-year high. Stocks have risen consistently since the 2016 election but have leveled off in recent months. As of now, the Democrats are favored to make gains in the midterm election. A shift of power often creates a more volatile situation, which could mean a drop in stock prices, continued rise in interest rates, or a halt of the current economic growth in the U.S.
It’s always difficult to predict the direction the economy will take and how an election will affect matters. Right now, with an important yet still up-in-the-air midterm election coming up it’s hard to know what’s going to happen. This makes it difficult to predict the optimal time to apply for a business loan.
Invoice Factoring: An Alternative to Traditional Loans
If you’re considering a small business loan, there’s really no way to predict whether you should apply now or after the election. If you’re seeking an alternative type of financing in the interim, you should consider invoice factoring. Invoice factoring, is a cash flow solution that gives you immediate cash for your unpaid customer invoices so you don’t have to wait the 30-60 days. Benefits of this alternative form of financing include:
- Ability to Fund Quickly. Unlike bank loans, where you may have to wait weeks or even months for approval and to receive funds, invoice factoring can get you cash within days.
- No Debt Incurred. You can improve your cash flow situation without taking on any debt.
- Favorable Terms. No application fees, long-term contracts, or hidden fees. Riviera’s invoice factoring is simple and straight-forward. It can be used for a short period of time.
- Eliminate Bad Debt. Riviera takes the credit risk on the invoices they factor.
The Advantages of Working with Riviera Finance
Riviera Finance is an experienced and stable invoice factoring company that’s been helping businesses with financial solutions for almost 50 years. They offer fast approval, reliable customer service and flexible terms. To learn more about how invoice factoring can help you improve your business’s financial situation regardless of how the 2018 elections turn out, contact Riviera Finance today.