Monday, May 10, 2010

Another year of financing challenges

Small businesses will be faced with the credit crunch for yet another year according to published reports. Banks and lenders slowly continue to re-build their balance sheets although few are making any new substantial loans.

Many say we are suffering from the fastest ever shrinkage in commercail lending for small businesses and there's little if any sign of it coming to an end. Small businesses are dependant on local banks relying on them for capital, financing and lines of credit.

Until big bank finances are healthy small businesses will face challenges for financing. Alternative financing sources such as factors, venture capital groups and asset based lenders are the best bet in the short term for small business finance.

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