Availability of credit to small businesses

[jpinpb]

I would think if one were to start a business, you would have to, let’s say, “predict” how your business will do and the income it will generate. Since our economy hasn’t been exactly thriving (but for government substenance) I’d be reluctant to take out a loan to start a venture in such an environment.

Taking out a non-recourse loan and gambling is one thing. Starting a business is a real risk. I’d say, it would even be hard to determine what business to start in these economic times. What would it be? Restaurant? Anything related to real estate or automotive? Retail? Tough out there.

[davelj]

[quote=sdduuuude]Credit-worthy borrowers don’t want to borrow. It’s one of the traits that make them credit-worthy.[/quote]

I think you meant to say SOME credit-worthy borrowers don’t want to borrow, yes? If all borrowers were not worthy of credit, 100% of all borrowers would default, right? I think you’re overstating your point by just a tad.

[davelj]

[quote=sdduuuude]Credit-worthy borrowers don’t want to borrow. It’s one of the traits that make them credit-worthy.[/quote]

I think you meant to say SOME credit-worthy borrowers don’t want to borrow, yes? If all borrowers were not worthy of credit, 100% of all borrowers would default, right? I think you’re overstating your point by just a tad.

[davelj]

[quote=sdduuuude]Credit-worthy borrowers don’t want to borrow. It’s one of the traits that make them credit-worthy.[/quote]

I think you meant to say SOME credit-worthy borrowers don’t want to borrow, yes? If all borrowers were not worthy of credit, 100% of all borrowers would default, right? I think you’re overstating your point by just a tad.

[davelj]

[quote=sdduuuude]Credit-worthy borrowers don’t want to borrow. It’s one of the traits that make them credit-worthy.[/quote]

I think you meant to say SOME credit-worthy borrowers don’t want to borrow, yes? If all borrowers were not worthy of credit, 100% of all borrowers would default, right? I think you’re overstating your point by just a tad.

[davelj]

[quote=sdduuuude]Credit-worthy borrowers don’t want to borrow. It’s one of the traits that make them credit-worthy.[/quote]

I think you meant to say SOME credit-worthy borrowers don’t want to borrow, yes? If all borrowers were not worthy of credit, 100% of all borrowers would default, right? I think you’re overstating your point by just a tad.

[CA renter]

Totally agree with this, davelj.

It’s a solvency problem, not a liquidity problem.

That’s why it’s so funny to hear all the pundits out there screaming for “looser” standards and more credit.

The only thing they’re doing with the stimulus/extra credit is digging the FBs even deeper than they already are.

IMHO, the solution is, and has always been, allowing asset prices to deflate. We’ve had decades of rising asset prices, and for what? Just to get everyone into more debt?

[CA renter]

Totally agree with this, davelj.

It’s a solvency problem, not a liquidity problem.

That’s why it’s so funny to hear all the pundits out there screaming for “looser” standards and more credit.

The only thing they’re doing with the stimulus/extra credit is digging the FBs even deeper than they already are.

IMHO, the solution is, and has always been, allowing asset prices to deflate. We’ve had decades of rising asset prices, and for what? Just to get everyone into more debt?

[CA renter]

Totally agree with this, davelj.

It’s a solvency problem, not a liquidity problem.

That’s why it’s so funny to hear all the pundits out there screaming for “looser” standards and more credit.

The only thing they’re doing with the stimulus/extra credit is digging the FBs even deeper than they already are.

IMHO, the solution is, and has always been, allowing asset prices to deflate. We’ve had decades of rising asset prices, and for what? Just to get everyone into more debt?

[CA renter]

Totally agree with this, davelj.

It’s a solvency problem, not a liquidity problem.

That’s why it’s so funny to hear all the pundits out there screaming for “looser” standards and more credit.

The only thing they’re doing with the stimulus/extra credit is digging the FBs even deeper than they already are.

IMHO, the solution is, and has always been, allowing asset prices to deflate. We’ve had decades of rising asset prices, and for what? Just to get everyone into more debt?

[CA renter]

Totally agree with this, davelj.

It’s a solvency problem, not a liquidity problem.

That’s why it’s so funny to hear all the pundits out there screaming for “looser” standards and more credit.

The only thing they’re doing with the stimulus/extra credit is digging the FBs even deeper than they already are.

IMHO, the solution is, and has always been, allowing asset prices to deflate. We’ve had decades of rising asset prices, and for what? Just to get everyone into more debt?

[evolusd]

Absolutely agree. Our bank was always on the conservative side on the way up, and it has paid off big time. Companies with solid cash flows and net worth are easily getting credit, and at very favorable terms. We are hungry for C&I loans right now…not so much investor CRE, though.

[evolusd]

Absolutely agree. Our bank was always on the conservative side on the way up, and it has paid off big time. Companies with solid cash flows and net worth are easily getting credit, and at very favorable terms. We are hungry for C&I loans right now…not so much investor CRE, though.

[evolusd]

Absolutely agree. Our bank was always on the conservative side on the way up, and it has paid off big time. Companies with solid cash flows and net worth are easily getting credit, and at very favorable terms. We are hungry for C&I loans right now…not so much investor CRE, though.

[evolusd]

Absolutely agree. Our bank was always on the conservative side on the way up, and it has paid off big time. Companies with solid cash flows and net worth are easily getting credit, and at very favorable terms. We are hungry for C&I loans right now…not so much investor CRE, though.

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