My Business Credit Journey to 1,000,000

A Credit Crunch by definition is “An economic condition where investment capital is difficult to obtain. Banks and investors become wary of lending funds to corporations, thereby driving up the price of debt products for borrowers.”

I am sure if you have seen any type of financial news in the past year you would have heard this term used. It is no secret that the United States is in a credit crunch and some may even say we are headed for a huge recession(to each his own). On the surface, the credit crunch has affected business credit but I do not think we have seen a huge change as we have seen in the personal credit world.

On the personal side we have seen the increased difficulty to acquire mortgages(this will just perpetuate the foreclosures as people with increasing rates now need new mortgages but I guess thats the world’s natural way of purging the madness), in increased requirements for personal lines of credit and the increase of the cost of the average home equity LOC are just some examples of the effects of the credit crunch that we face.

I have seen countless headlines with the term “credit crunch” in it and I guess that’s one reason for some of my readers to be concerned. We have seen the feds come in to make their move and it should help some what. Through 2007 we have also seen the tighten of all types of consumer loans but little on the corporate side. One reason for this is that many small businesses are operating with high cash flow. What I am seeing though is that it is a little more difficult to get a paydex score. I thought it was just me and my circle but we are getting reports from many others that it is becoming a bit hard.

Now that business owners and “to be” entrepreneurs have limited home equity and person LOC options to start businesses, now is the time to get solid business credit. I cannot understand why so many people think that business credit is “too good to be true”. I have gotten countless emails that read around those lines. Lets see who will be the last business standing.

cheers

-money mike