Wednesday, June 24, 2009

Credit Still Tight

The Turnaround Management Association’s Annual Trend Watch Credit Poll is out and the final word is in - business credit is still tight.

“The credit crunch is being exacerbated not only by the lack of availability of credit, but also by the lack of borrowing capacity of companies needing credit,” said TMA Chairman Arthur Perkins, co-head of the West Region Restructuring Practice of Deloitte Financial Advisory Services LLP in San Francisco.

In other words, borrowers suffer from lack of cash flow to service their debt and the banks suffer from lack of capital.

The end result to borrowers is an increase in interest rates and a tightening of loan conditions including a reduction in asset valuations used for collateral.

There is money sitting on the sidelines being loaned against accounts receivable, equipment and commercial real estate. But you have to know where to find it.

Need help finding the right asset based lender or telling your story the right way for your business? If you're in need of at least $1 million, read "Matchmaking for Business Loans" and give me a call!

Tags : credit crunch , Turnaround Management Association , TMA , Credit Poll , accounts receivable , commercial real estate , asset based loans

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