10.31.25 - Looking Ahead: Positioning Your Business for the 2026 Rate Reset

Part 3 of 3 in the “Navigating the Rate Wave” series

By Alan Gaul, VP., Marketing TASI® Bank

You’ve studied the wave. You’ve steadied your balance. Now it’s time to look to the horizon.

2026 is shaping up to be a potential inflection year — with economists predicting gradual rate easing, slower inflation, and renewed capital appetite. For business leaders, that means one thing: preparation beats prediction.

1. Know the Forecast — But Don’t Depend on It

No one can call the exact timing of the next Fed move.

Instead of waiting for the “perfect” rate environment, focus on readiness:

• Model best-case, base-case, and worst-case scenarios for interest and demand.
• Keep your financing structures flexible — prepayment options and step-down clauses matter.
• Review any balloon payments or maturities within 18 months.

The tide will shift — make sure your board is waxed before it does.

2. Refinance with Intention

If rates ease in 2026, refinancing can unlock new capacity for growth — but only if your financials are clean and complete.

• Start conversations early; lenders reward preparation.
• Consolidate high-cost or short-term debt into longer, more stable structures.
• Consider fixed-rate terms to protect against future volatility.

The Maverick play: refinance from strength, not desperation.

3. Invest Where It Counts

The next growth wave belongs to the efficient and the adaptable.

• Sustainability upgrades: Energy-efficient lighting, HVAC, or fleet improvements can reduce costs and qualify for rebates.
• Digital transformation: Tools that automate accounting, HR, and inventory deliver compounding returns.
• Human capital: Keep investing in people — they’re the real yield curve.

4. Partner Up Early

Banks aren’t just lenders; they’re navigators.

Before the next rate shift, sit down with your relationship manager for a forward-looking portfolio review.

Ask:

• Which of my loans can be refinanced or restructured?
• How do I position for future credit opportunities?
• What does my 2026 balance sheet want to look like?

Actionable Takeaways

• Identify and calendar all maturities within 18 months.
• Gather updated financials and begin refinancing discussions by Q1 2026.
• Explore fixed-rate options or hedging strategies.
• Prioritize capital improvements that lower long-term operating costs.
• Schedule a strategic review with your banker to align financing with growth goals.

The TASI® Bank Takeaway

Planning beats guessing, every time.

Whether rates rise, fall, or flatten, businesses that prepare will surf farther and steadier than those waiting on the shore.

The future belongs to those who plan for it.

Let’s chart your 2026 strategy together.