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.