Monday, January 4, 2010

US Business Loan Defaults Rise Again

Severe delinquencies by small and medium-sized U.S. businesses on the loans, leases and lines of credit to finance capital equipment rose again in November as lenders remained reluctant to extend fresh financing, PayNet Inc reported on Monday.

Accounts behind 180 days or more, and unlikely ever to be paid, rose to 0.91 percent in November from 0.87 percent in October, according to PayNet, which provides risk-management tools to the commercial lending industry.

It was the 22nd consecutive monthly increase in loans so far in arrears they ultimately may have to be written off by lenders.

Accounts in moderate delinquency, or those behind by 30 days or more, rose in November to 4.33 percent from 4.19 percent in October, according to PayNet.

Clearly, the "turnaround" in the economy has simply been a government induced recovery of its favored sectors, autos, investment banks etc. Small and medium-sized businesses are being squeezed by the distortional method the US government is using to direct money flows.

7 comments:

  1. With small businesses having to fend on their own without being able to obtain small business loans, it makes things much more difficult. Small businesses trying to expand or upgrade their businesses should try to get a business cash advance.

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  2. It is so hard to obtain a small business loan in today's ecnonomic times whether a business is trying to upgrade their services or products, or they are simply trying to get their start up business going more and more banks are denying these business minded people. There are many other options that business entrepreneurs can seek.

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  3. Small businesses can turn to business cash advances if they can't secure a bank loan or if they need to get cash fast and without some of the extra paperwork involved in traditional loans.

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  4. Totally agree.

    The problem for the bankster cabal is that if they release all that newly-printed money into the general economy, that IMMEDIATELY starts the hyperinflation countdown.

    So, instead, the Fed and Wall Street hog all the money, the Fed using it to purchase worthless U.S. bonds, while Wall Street uses their cut to pump-up their equities bubble.

    Meanwhile, (as you say) all the rest of the economy is slowly starved. This puts roughly 40 U.S. states in the same boat as Greece and Spain.

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  7. $ years now, people still loosing their homes from this huge banking scandal, some relief from goverment but are they doing enough.Business Cash Advances

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