On June 13, the Federal Reserve announced a hike in interest rates by a quarter-point, from 1.75 to 2 percent. This marks the second increase in 2018, and two more increases were suggested for later this year, with the central bank projecting an increase in the federal funds rate to 2.4 percent by the end of 2018. The move symbolizes a strengthening economy, but if you’re a small business owner, it signifies higher loan rates and stickier credit card balances.

Though your initial reaction might be negative, higher interest rates could potentially benefit small businesses. A strong economy and higher rates could translate to a more competitive lending market, which could prompt banks and lenders to begin offering more financing options, which means more opportunities for small businesses to access funds.

Having said all that, higher interest rates could also potentially impact small businesses in negative ways as well. The first is a higher cost of capital, not just for new loans but for companies that have existing loans with floating rates. Another potential pitfall of higher interest rates is the effect on consumerism, possibly hindering sales and growth of small businesses. Consumers with credit card debt will be paying more in interest rate charges, thereby possessing less disposable income, and less of a desire to spend.

So what is the big-picture meaning for small businesses? The last several years have seen near-zero interest rates in order to jump-start economic activity. With the economy seemingly jump-started, we are unlikely to see rates so low anytime soon, so if more flexible cash flow is a concern, consider applying for a loan sooner rather than later. By proactively planning ahead and exploring financing options, you’ll have more breathing room to consider your choices before the next rate hike. The longer you wait, the more costly loans have the potential to become.