Stephen J . Sack Jr ., owner of Sack Energy , West Hartford , and chairman of CEMA , speaks to the assembled members .

Nickey J . Kollie , CEMA ’ s director of legislative affairs and member services , with a likeness of The Great Man , Samuel Clemens , aka Mark Twain .

Members of the Connecticut Energy Marketers Association donated toys to the U . S . Marine Corps Toys for Tots drive , at the Association ’ s annual holiday party , held Dec . 11 at the Mark Twain House & Museum in Hartford .

Photos by Stephen Bennett

Baskerville , continued from pg . 20 .

ADDITIONAL CONSIDERATIONS

• Shop around – you may be tempted to take the first refinancing offer you receive , particularly if it is from your existing bank , however you may find a better offer by keeping your options open . If you do end up changing to a new bank , they will likely want you to transition your entire banking relationship to them , including all deposits and operating accounts .

• Be prepared – when you are speaking with banks about refinancing , make sure to have a thorough understanding of your business financials and be able to explain your needs from the bank ’ s point of view . You can work with your financial advisor to prepare a comprehensive analysis package that does most of the heavy lifting .

• Consider the full picture – there can be other benefits to refinancing besides the current potential for a lower interest rate , such as freeing up assets or

improving cash flow , which may make it worthwhile . However , there are also potential additional costs for refinancing , such as pre-payment penalties or origination fees , which may reduce your expected savings . Consult your financial advisor to do a full analysis before moving forward .

WHY NOW ?

As mentioned above , the current situation with longer-term interest rates being lower than shorter-term interest rates is very uncommon , particularly at the levels we have seen recently . The Fed recently decided to hold interest rates steady and there are some people who expect the Fed to begin cutting interest rates as soon as 2024 . However , if economic conditions improve faster than expected , inflation heats up again or remains above target levels , or both situations occur , then interest rates may remain higher for longer and could even increase further .

In fact , just two years ago in December 2021 , the Fed policymakers ’ own projections showed that interest rates would be in the range 0.75 % to 1 %, however by the end of 2022 rates had ballooned to 4.25 % to 4.5 %. So , if you conclude that you can save money or improve cash flow by refinancing now , you may regret missing the opportunity if you pass based on a forecast that never materializes . You can even get free quotes from multiple banks before making a final decision on how to proceed , so the risk to explore refinancing is minimized , while the upside could be substantial .

Rashaan Baskerville , Sr . Director of Angus Finance , has nearly two decades of experience in the financial services and energy services fields . As a fractional CFO for the fuel distribution industry , he helps dealers develop and implement business growth strategies . He can be reached at rbaskerville @ angusenergy . com . l FON

22 JANUARY 2024 | FUEL OIL NEWS | www . fueloilnews . com