Decoding Your Capital: Beyond the Interest Rate Revenue may drive growth — but the cost of capital determines whether that growth is profitable. For small and mid-sized businesses, financing is often viewed as a necessary tool. Yet too many operators focus only on access to funds, not on the true costs associated with them. In 2026, understanding capital costs is no longer optional. It is central to margin protection and long-term stability. Borrowing without clarity quietly erodes profitability. Borrowing with precision strengthens it. The Hidden Impact on Margins Every percentage point in financing cost directly affects net income. A short-term facility priced above necessary levels can compress margins on every sale. Over time, that drag compounds. Consider the difference between: Structured term debt aligned with asset life Revolving capital used strategically for timing gaps High-cost short-duration funding rolled repeatedly The structure determines the effective annual cost. Many...