Credit Crisis Over – Perhaps 2009 Stay Of Execution

Mon Feb 22, 2010, 3:27 AM | | Posted in Small Business



Let’s hope the credit crisis is over, done with for families as well as businesses, large and small.

There are companies that are highly leveraged. That means they use debt to supplement investment in Research & Development and perhaps growth.

Therefore, for those companies, the credit crisis is far from over. Some are in deep shit. Many have to renegotiate with creditors this year.

However, that effort may not be as successful the second time around.

CFO online reports

• Lenders keen for business

  It may sound odd, given the tougher lending criteria of banks, but in some cases lenders are bending over backwards to keep borrowers in business.

• Banks not aggressive enough

  Some turnaround experts say that banks are not being aggressive enough in dealing with their distressed-loan portfolios. That’s because often times, it is due to an unwillingness on the part of banks to book loan losses or a lack of necessary capital to absorb them.

• 2010 year of action

  But banks won’t wait forever. While many credit agreements were stuck in neutral last year, 2010 will be a year of action for banks.

• How does your business stand?

  So, will the debt be as forgiving to leveraged companies in 2010, or will many firms simply be unable to find relief from crushing debt loads coming due?

In a Nutshell
How is your business standing as far as credit and debt? Will you eventually come out ahead of the cat and mouse game in 2010 or will it be a repeat of 2009. Let’s hope the credit crisis is ancient history for businesses, especially small businesses.

You might also like...

• Understand the credit crisis – visually
• Lessons From A Personal Credit Crisis
• What to do during a credit crisis
• Bob Rubin Identified Multiple Causes For Financial Crisis
• How to Get Out of Debt, Stay Out of Debt and Live Prosperously

Information contained herein is general in nature, and is provided for informational and educational purposes only. Past performance is no guarantee of future results. Talk to your financial adviser.

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