Posted on May 19th, 2020 in Domestic Tax

Borrowing in a Low-interest Rate Environment

Red percent sign with an arrow pointing down in the middle.

Businesses and their stakeholders are experiencing significant challenges to their short-term liquidity due to the COVID-19 pandemic. To help combat the struggles that many are facing, the Bank of Canada and the Canada Revenue Agency are lowering the prescribed interest rates.

For those taxpayers who are in a cash crunch, it may be enticing to borrow money. Is additional debt a good idea in these uncertain times?

RSM’s article explores the implications and opportunities that stem from borrowing in a low interest-rate environment.

Article written by RSM Canada and referenced with permission as a member of RSM Canada Alliance.