Credit crunch for small business? No problem if you need to buy Microsoft products.According to The Wall Street Journal (subscription required), Microsoft has announced it plans to increase its vendor financing to small businesses by as much as 60% in 2008 to $1.25 billion.
Microsoft offers an array of business loans between $100 thousand to $500 thousand - a "sweet spot for small businesses".
No doubt Microsoft will be extending these business loans in some cases to marginally creditworthy companies. Further, there's very, very little collateral in software. If the loans go into default, there's not much Microsoft can do to recover. Microsoft expects its bad debt expense will increase with its small business loan volume.
The article does not indicate what level of interest rates Microsoft will charge on these small business loans. If you're offered financing by Microsoft, check the terms and then go re-read my posting, "0% Equipment Financing - Is it Right for You?".
Need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans" and give me a call!
Tags : Microsoft , small business , loans , vendor financing , Wall Street Journal
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