Rising Borrowing Costs and Capital Structure Uncertainty
Definition
Higher borrowing costs jumped from #10 concern in 2023 to #4 globally and #6 for US CEOs in 2024. This indicates CFOs lack adequate strategies for capital structure optimization, debt refinancing timing, and cost-of-capital management. The problem creates cash flow pressure through increased debt service costs, reduced access to favorable financing, and difficulty in funding growth initiatives or managing working capital. SMB CEOs and CFOs struggle with refinancing maturing debt, optimizing between debt and equity financing, and managing interest rate exposure. Related to the broader $2.7 billion office loan portfolio with 7.3% delinquency rates, uncertainty about future borrowing costs creates strategic paralysis.
Key Findings
- Financial Impact: $150,000
- Frequency: annual
Why This Matters
Corporate finance advisory, debt restructuring consulting, treasurer services, capital markets advisory, interest rate hedging services
Affected Stakeholders
Chief Executive Officer / Principal, Chief Financial Officer / Controller
Deep Analysis (Premium)
Financial Impact
Data available with full access.
Current Workarounds
Data available with full access.
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Elevated Inflation and Margin Compression Without Mitigation Strategies
Cybersecurity Threats and Executive-Level Security Risk Management
Commercial Real Estate Portfolio Risk and Office Space Strategic Misalignment
ESG Compliance and Board Governance Misalignment
National Debt and Fiscal Policy Uncertainty Affecting Strategic Planning
Geopolitical Instability and War Risk Management
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