Low Interest Rates Decrease Cost of Borrowing

SWOT Opportunity: Low Interest Rates Decrease Cost of Borrowing
When the cost of borrowing money decreases, a firm has two options: 1. they can borrow more, 2. they can use the savings to increase profits. Low borrowing cost are especially important for financial firms, because their entire business model works to borrow money are low cost and lend money are high cost. The larger the gap between the two, the larger the profitability of the company.