We’re nearing the halfway point of the year, which makes this a natural moment to step back and take a hard look at how your annual plan is actually unfolding. Most businesses set goals in January based on a set of assumptions about growth, costs, demand and the broader economy. By mid-year, some of those assumptions shift. The question is whether you’ve adjusted with them.
Here we highlight some strategic questions to ask you, your team, and your banker.
Are we prepared for sustained or shifting borrowing costs?
One of the biggest areas to revisit is the cost of capital. Conversations around interest rates haven’t gone away, but they’ve become more nuanced. Policy direction from the Federal Reserve continues to shape an environment where borrowing costs may stay elevated longer than many initially expected— or move unevenly depending on economic conditions or geo-political events.
Rather than trying to predict the exact direction of rates, it’s more useful to understand how sensitive your business is to change. If borrowing costs move up or down by a point or two, what happens to your margins, your cash flow, or your ability to invest? If that answer isn’t clear, this is the time to get clarity.
Is refinancing an option?
The Wall Street Journal reported‡ that U.S. corporate refinancings reached roughly $425 billion in 2025 – the highest peak since 2020. As rates fluctuate, it is critical to evaluate refinancing options. This could be the time to consolidate debt or secure a better rate for a loan. Refinancing could open the door for a larger purchase later in the year or allow for a different goal to be reached more quickly.
Additionally, refinancing into a fixed rate loan may provide some peace of mind for business owners who are nervous about the impact of rising rates on an existing variable rate loan. A fixed rate offers something that business owners crave – predictability.
Do you have the right financing tools for your needs?
It’s also a good moment to reassess whether you’re using the right financing tools for where your business is now. As companies grow or shift direction, their capital needs evolve. Financing should support that—not constrain it. If your current setup is limiting your ability to move quickly, invest strategically, or manage cash flow effectively, it may be time to explore alternatives that better align with your goals.
Make a list of business goals, and discuss these options with an experienced banker, as they should be able to help clients prepare and navigate any economic environment with sound lending advice.
Is it time to make a large purchase?
Mid-year is also when larger investment decisions tend to come back into focus. Equipment purchases, expansions or real estate decisions all carry more weight when capital is more expensive, and economic signals are mixed. The question isn’t simply whether to move forward or hold back; it’s whether the investment still makes sense under different scenarios. Does the return justify the cost if conditions tighten? Does it still hold if things accelerate? In some cases, owning and/or upgrading may still be the right long-term play. In others, maintaining flexibility and preserving liquidity could be more valuable.
Equally important is revisiting the assumptions that shaped your plan in the first place. Revenue projections, cost expectations and customer demand may not look the same today as they did at the start of the year. The earlier those gaps are identified, the more options you have to respond. Waiting until the fourth quarter to adjust typically limits those options.
Bankers can help owners evaluate these options for the short- and long-term.
Be in regular communication with your banker
Finally, it is critical to maintain regular communication with your banker. Business owners should consistently share what is happening and ask the tough questions to see what changes can be made.
Bankers are here to support owners and to help businesses succeed—having the full picture will result in sound advice and recommendations.
Our small business specialists are ready to help you with your small business financial needs through guidance, support and service. We also offer a series of online tutorials to help your business succeed. We’re always adding new topics that we believe can help you build and manage your business. Explore our small business courses.
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