Availability of credit to small businesses

[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.

[EconProf]

On the other hand….
In some ways, now is the perfect time to buy or start a business. Labor is cheaper, and arguably higher quality than in the boom times when workers were picky and demanding. To buy or rent for your business is vastly cheaper. To build anything costs way less than a few years ago.
Profits are simply revenues minus costs. Now is the time to hammer down costs and undercut the competition with lower prices, better service. The problem, of course, is on the revenue side in this depressed economy.
But in the broader economy, especially for big business, their profits have rebounded smartly, thus fueling the stock market recovery, largely because they are beating down costs, and thriving even on reduced revenues.

[EconProf]

On the other hand….
In some ways, now is the perfect time to buy or start a business. Labor is cheaper, and arguably higher quality than in the boom times when workers were picky and demanding. To buy or rent for your business is vastly cheaper. To build anything costs way less than a few years ago.
Profits are simply revenues minus costs. Now is the time to hammer down costs and undercut the competition with lower prices, better service. The problem, of course, is on the revenue side in this depressed economy.
But in the broader economy, especially for big business, their profits have rebounded smartly, thus fueling the stock market recovery, largely because they are beating down costs, and thriving even on reduced revenues.

[EconProf]

On the other hand….
In some ways, now is the perfect time to buy or start a business. Labor is cheaper, and arguably higher quality than in the boom times when workers were picky and demanding. To buy or rent for your business is vastly cheaper. To build anything costs way less than a few years ago.
Profits are simply revenues minus costs. Now is the time to hammer down costs and undercut the competition with lower prices, better service. The problem, of course, is on the revenue side in this depressed economy.
But in the broader economy, especially for big business, their profits have rebounded smartly, thus fueling the stock market recovery, largely because they are beating down costs, and thriving even on reduced revenues.

[EconProf]

On the other hand….
In some ways, now is the perfect time to buy or start a business. Labor is cheaper, and arguably higher quality than in the boom times when workers were picky and demanding. To buy or rent for your business is vastly cheaper. To build anything costs way less than a few years ago.
Profits are simply revenues minus costs. Now is the time to hammer down costs and undercut the competition with lower prices, better service. The problem, of course, is on the revenue side in this depressed economy.
But in the broader economy, especially for big business, their profits have rebounded smartly, thus fueling the stock market recovery, largely because they are beating down costs, and thriving even on reduced revenues.

[EconProf]

On the other hand….
In some ways, now is the perfect time to buy or start a business. Labor is cheaper, and arguably higher quality than in the boom times when workers were picky and demanding. To buy or rent for your business is vastly cheaper. To build anything costs way less than a few years ago.
Profits are simply revenues minus costs. Now is the time to hammer down costs and undercut the competition with lower prices, better service. The problem, of course, is on the revenue side in this depressed economy.
But in the broader economy, especially for big business, their profits have rebounded smartly, thus fueling the stock market recovery, largely because they are beating down costs, and thriving even on reduced revenues.

[Author]

Posts