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I’m trying to understand how the recent shift in the yield curve inversion is actually affecting my small business loan application. The bank mentioned something about their cost of funds and long-term outlook, but it feels disconnected from the rate they’re offering me now.

We applied last quarter and the lender said their cost of funds had risen and they were pricing for a longer horizon, but the rate they offered still didn’t feel tied to our cash flow. It seemed like the pricing was more about their balance sheet picture than what we actually projected.

Two local lenders gave me options side by side. One looked cheap upfront but had a big closing fee; the other had a nicer long-term rate but a longer term. I went with the cheaper upfront route, and the payments became a stretch when revenue dipped.

I asked for a rate hold for a couple of weeks while we finish some invoices, but the quote moved and we had to re-quote. The delay slowed us down more than it helped.

Do you think the real issue is how they're pricing risk versus how your cash flow actually looks on a 12 month projection?

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