How does lowering interest rates affect businesses?

How interest rates affect businesses is discussed here.

Two things can impact a business: Customers who have debts have less money to spend, as they pay more interest to lenders. As a result, sales fall. Overdrafted firms will incur higher interest costs as they have to pay more interest.

How would banks benefit from lower interest rates? Low interest rates can also raise asset prices. Higher asset prices can increase household wealth, which can boost spending. Lower costs for financing capital purchases for businesses. Low interest rates encourage borrowing, which can lead to higher levels of debt.

What happens if interest drops?

The lower the interest rate, people are more likely to borrow money to purchase large purchases like houses and cars. Consumers who pay lower interest rates have more money to spend which can lead to an increase in spending across the economy.

What effect do interest rates have on international businesses?

Businesses and consumers will borrow less and spend less if interest rates are raised. This leads to lower revenue and net income. Manufacturing companies could be affected by higher interest rates, which tend to result in a stronger U.S. Dollar and lower global prices.