Fixed-rate Operating Loans

By Scott Boyles, Chief Lending Officer

Here’s an answer to better predict business costs: one-year, fixed-rate operating loans from Farmers & Merchants Bank.

Other banks only offer floating-rate operating loans, making it impossible to accurately estimate borrowing costs. Adjustable rates like these involve more risk too: if short-term interest rates increase during the year, your cost of borrowing at other banks will increase.

A fixed-rate creates more stability for your business. Farmers & Merchants Bank protects you against increasing rates by fixing the cost of your borrowing throughout the term of the operating loan. Even better, in most cases, the fixed rate charged by Farmers and Merchants Bank will closely match the initial floating-rate offered by other institutions.