Released today was the October 2008 Senior Loan Officer Opinion Survey on Bank Lending Practices. Over 80 percent of domestic banks reported having tightened lending standards on commercial and industrial (C&I) loans to small businesses and large and middle-market firms over the past three months.About 85 percent of domestic banks reported having tightened their lending standards on commercial real estate loans over the past three months.
This week I'll be speaking to two organizations on alternative financing solutions for businesses caught by the credit crunch. The message - though business credit is extremely tight, there are banks and commercial finance companies lending to businesses of all sizes secured by receivables, equipment and real estate. Inventory secured loans are getting increasingly difficult to find under any scenario.
However, the interest rate on business loans have not necessarily dropped notwithstanding last week's cut in the prime rate. Floors on borrowing rates and higher spreads will keep many businesses from lowering their cost of capital during these crunchy times.
Need help finding the right lender or telling your story the right way for your California business? Read "Matchmaking for Business Loans" and give me a call!
Tags : credit crunch , Federal Reserve , business loans , asset based loans
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