How Can Companies Mitigate the Impact of Increased Interest Payments?
There are several strategies companies can employ to mitigate the impact of increased interest payments:
Refinancing: Companies can refinance existing debt at more favorable terms to lower interest payments. Hedging: Utilizing financial instruments to hedge against interest rate increases. Cost-Cutting: Reducing operational expenses to free up cash flow. Revenue Growth: Focusing on strategies to increase revenues can help offset higher interest payments.