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For Commercial Borrowers

If your business loan is contingent upon a swap to hedge the rate, or if your bank is recommending a swap to hedge your interest rate risk, what questions should you ask before you lock in your rate?

  • Is the bank's quote the best rate for you, or the best rate for the bank? 
  • What is the swap fee?  
  • How do I verify and negotiate the swap fee? 

Let’s be clear, there will be a swap fee.

  • What is the ISDA agreement? 
  • Can I break the swap agreement early if I want to re-finance or sell?  
  • What's the break cost?
  • How will breaking the swap affect my ability to sell the project?

We answer these questions, lower your costs and reduce risk.