Credit Shortage Threatens Supplier Growth
Detroit Free Press writer Susan Tompor sheds light on the challenges that lie ahead for small to medium sizes businesses, particularly in the manufacturing sector. As analysts proclaim that the recession is over, how do small manufacturing shops access the capital they need to re-set production and re-hire workers? Read the article
4 Months and Still Going…
Multiple media outlets reported of the consistent 4-month uptick in SBA lending. Better yet, all signs indicate that this type of lending will continue to increase through the remainder of 2009. “I think it’s a continuation of the impact of raising the percentage that we guaranteed to 90 percent and the elimination of the fees to the borrower,” said Richard Temkin, U.S. Small Business Administration District Director. “And the banks’ credit requirements perhaps are loosening somewhat, though that seems to be a slow process.”
So, what does this mean for small businesses? This is an encouraging trend that hints that credit markets are starting to thaw from the deep freeze of early 2009 and that banks are increasing lending. For entrepreneurs who have been struggling for the past year, this is good news. Those who are fortunate to still have a traditional bank loan are more likely to keep it. Those of you thinking about starting a business and considering a SBA loan, might just be in luck. Overall, this is a positive sign that Michigan may have hung the “open for business” sign back outside its window.
Where To Turn When Your Bank Credit Line Shrinks Pt. 2: Factoring
Joining us for part two of our previous episode, as we talk more about which strategies work best when your credit line shrinks. In this podcast, we discuss how many entrepreneurs are seeking factoring as an easy and smart way to increase their business’s working capital. The current credit crunch has put a spotlight on factoring - this podcast explains why and how it can be used as a viable option to increase cash flow. We also answer the question; “how does the cost of using asset-based lending or factoring differ from utilizing a bank for funds?” Hennessey Capital President Mike Semanco also shares the one thing business owners should do to keep their business growing during this challenging time.
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Access To Capital
We recently held a webinar discussing how entrepreneurs can gain access to capital and how to determine what type of financing makes sense for their business.
Take a listen below…. (it’s about 20 minutes long).
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Welcome to the Conversation!
This is the first post of capital conversations, a podcast and blog about making sure small busineses find the financing they need to succeed.
