According to The LA Times, Warren Buffett does not think the economy is experiencing a credit crunch."I wouldn't quite call it a credit crunch," he said. "Money is available,and it's really quite cheap because of the lowering of rates that has taken place."
He added: "What has happened is a repricing of risk and an unavailability of what I might call ' dumb money,' of which there was plenty around a year ago."
It's never a credit crunch unless it affects the ability of your business to obtain a business loan or other financing. Money is available, just not wheelbarrows of money for you to go join in on the poker game with Bill Gates.
Your business may not qualify for the lowest cost bank loan, but it may qualify for an SBA loan or asset based financing including revolving lines of credit, factoring and equipment leasing.
And yes, risk is being re-priced. So now your business loan may be priced a few percentage points over prime rate, or as high as four to five times prime!
Need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans" and give me a call!
Tags : credit crunch , business loans , Warren Buffett
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