"Just Wait Until January" Is the Most Expensive Advice in Business Lending Right Now

The Most Common Thing We Hear in October

"Things are busy right now. We'll look at financing after the holidays."

It sounds reasonable. Most owners are at their busiest in Q4, and a loan application feels like something that can wait. In 2026, waiting may cost more than usual. Here's why.

Reason #1: Rates Are Moving the Wrong Way

For two years, waiting was often a reasonable bet because rates were expected to fall. That changed on September 16, when the Federal Reserve raised its target range to 3.75%–4.00%, its first hike since 2023. [1] Prime is now 7.00%, and the 10-year Treasury, which drives many fixed-rate loans, closed at 5.29% on September 30. [2]

The Fed meets again on October 27–28 and in December. According to the minutes of the September meeting, most officials think another increase "would likely be appropriate by year end." [3] If that happens, a variable-rate loan you take in January will likely start higher than the same loan taken today.

Reason #2: December Is a Slow Month to Get Funded

Lenders, appraisers, title companies, equipment vendors and your own accountant all get busier and take more time off in December. Things that take a week in October can take much longer in December:

• Appraisals and site visits get pushed into the new year
• Underwriting queues grow as other businesses rush to close by year-end
• Document requests wait on people who are out of the office
• Closings get scheduled around holidays

If you need money in January, you should start in October.

Reason #3: Year-End Deadlines Don't Move

Some benefits only apply to this calendar year:

• Section 179 and bonus depreciation: Equipment has to be placed in service by December 31 to deduct it on your 2026 taxes. The 2026 Section 179 limit is $2.56 million. [4]
• Year-end pricing: Many equipment dealers and vendors push hard to hit annual targets
• Use-it-or-lose-it budgets: Some of your customers spend remaining budget in Q4, and you need inventory and capacity to fulfill it

Reason #4: Your Numbers May Look Better Now Than in January

Lenders look at your most recent bank statements and financials. For many businesses, October and November statements look strong, before holiday expenses, bonuses and slow January collections hit. Applying while your numbers are at their best can mean better terms.

Reason #5: Some Doors Just Closed, and More May Close

The SBA's new rulebook, which took effect October 1, ended eligibility for green card holders, raised the cash flow test for most business acquisitions from 1.15x to 1.25x, and put even small acquisition loans through full underwriting. [5] Rules, rates and credit standards can all shift. The terms available today aren't guaranteed in three months, and small business owners already expect credit to get a little harder to find. [6]

When Waiting Is the Right Call

To be fair, there are good reasons to hold off:

• Your financials will be meaningfully stronger after Q4 (a record holiday season, a large contract closing)
• You don't have a clear use for the money yet
• You're resolving a credit issue that will be fixed in the next couple of months

If one of these applies, waiting may get you a better result. If not, waiting is usually just delay.

What Applying Now Actually Takes

Applying doesn't commit you to borrowing. With DirectCredit, a single application lets you see what lenders can offer, so you can decide with real numbers instead of guesses. Have these ready:

1. Last two years of business tax returns
2. Year-to-date profit and loss statement and balance sheet
3. Last three to six months of business bank statements
4. A short description of what the money is for

The Bottom Line

When rates are falling, waiting can pay off. They aren't falling now. Rates are going up, year-end deadlines are fixed, and December is a slow month to get anything done. If financing is on your 2027 plan, the best time to start is now, while you still have time to compare offers and choose.

Sources

1. Federal Reserve, FOMC statement, September 16, 2026
2. Lendio, Current SBA Loan Interest Rates, October 2026
3. Investinglive, FOMC Minutes: Most participants assessed another hike would likely be appropriate by year end
4. Current Federal Tax Developments, Technical Revisions to Revenue Procedure 2025-32
5. Edison Business Advisors, New SBA 7(a) Loan Program Requirements Effective October 1, 2026; PilieroMazza, Five SBA 7(a) Changes That Could Reshape Business Acquisitions
6. NFIB, Small Business Economic Trends, September 2026 (a net -3% of owners expect easier credit conditions)