Thu 18 Sep 2008
Wall Street Squeezes Small Business Even Tighter
Posted by Megan Dorn under Small Business, Financing
Small businesses wishing to borrow money should prepare themselves for brick walls at every turn. More-stringent requirements from banks and higher credit rates have been beating down on small businesses all year, but the crumbling of some of Wall Street’s heavy hitters this past week will cause the financial turmoil facing small businesses to only intensify.
The Wall Street Journal published an article Tuesday underscoring the effects that the latest crisis in the financial market will have on small businesses’ financial options. Small businesses with solid credit histories and long track records will only be slightly affected, according to the article. It’s the startups with mediocre to poor credit histories and short to non-existent track records that will run into trouble.
Some small businesses are opting to wait out the storm, postponing larger purchases and projects because of the uncertainty. Others are crossing their fingers and approaching credit unions and community banks to get their funding.
This saga is far from over, so in the mean time prepare yourself for the harsh realities of an American financial system in crisis and do what you can to avoid having to solicit its help.
