Banking and Lending Outlook for 2023

Banking and Lending Outlook for 2023

Posted in Hot Topics
On December 20, 2022

In our December 2022 “Office Hour with SKC”, Sarah Krom was joined by special guests Melissa Geiger, VP of Business & Professional Banking with M&T Bank, Richard Biggs III, VP Business Relationship Office with Kearny Bank and Marc Demetriou, SVP of Mortgage Lending with Guaranteed Rate where they discussed everything you need to know about banking and lending in order to position your business for growth and success in 2023. Below are the top 3 takeaways from their dynamic discussion.

1. Commercial Lines of Credit

Every business should have a line of credit. It is an “insurance policy” and you only pay on what you use, and it is a variable rate. Lines of credit help with cash flow, and short term expenses such as payroll, hiring, waiting for A/R to come in, etc.

Important to note, apply for a line of credit when you don’t need it so it is ready to use when you DO need it! What is the right amount to apply for? A good rule of thumb is 10-15% of your gross sales.

2. Current State of Commercial Investment Properties

In our current economic climate, no business wants a large commercial property if they aren’t going to get their ROI. Business owners are looking closely at what they will be getting out of the property. Many property owners are looking to split space to lower rents, downsize or become an owner-occupied building.

Price of warehouse space is going up – mainly because business owners want to have supplies on hand to minimize supply chain interruptions.

If a property owner needs to get cash out of their investment, they would need to cash out or refinance since credit lines are generally unavailable.

3. Residential Mortgage Rates and Home Values

A year ago today, residential mortgage rates were at an all time low - well below 3%. One year later, rates hover around 7%. Forecasting models show that we should be in the low 5% range by summer/fall of 2023.

There is very little inventory in the marketplace – and demand is certainly outpacing inventory. So, should you wait to make a home purchase? Actually, if you find the right home, the next two months will be the best time to buy for a long time. Even though mortgage rates are higher, you will get a better value for what you are paying.

Currently, purchases of first and second homes are down 50% from last year, which has brought us back to our average activity in 2019.


For more information and the full discussion on how you can position your business for growth and success in 2023, watch the full session here.



Just like our clients, SKC is an entrepreneurial, independent business. In 1982, we had a one-room office and a vision. Forty years later, we are a dynamic group of determined, creative thinkers and still growing!