Fifteen years ago, a big company borrowed money by selling bonds at a fixed interest rate of X%. A smaller company, on the other hand, had to pay X% plus an extra 2%. This made it costlier for the smaller company to get money, which was a big disadvantage for them.
But today, both the big company and the smaller company are borrowing money at the same rate of X%. Why? Because it’s now easier for companies to get capital. For mid-sized companies, how much they pay to borrow money is very important.
This change means they can grow and compete better with larger companies. The financial landscape is shifting, making it fairer for everyone!
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