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Small businesses and disabled access?

Why small businesses have no access to credit ?

  • I tried to google this but I did not find anything that really explains why? Sure a lot of articles on the web talks about tight credit, but, I can't seem to find why this is so. Do you know of an article that explains why there is tight credit?

  • Answer:

    Small business pose a threat to banks, because they have less collateral to offer if they can't pay back their debts and they are more prone to failing/ becoming bankrupt/ liquidating in the big bad world of business. Therefore, if banks think they're more likely to lose their money by giving out loans to small firms, then they won't do it. Easy peasy.

General Fear at Yahoo! Answers Visit the source

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Other answers

There is all sorts of credit available to small businesses -- as long as they are reasonable risks. There is not a lot of credit available to companies that pose high risks -- e.g. negative cash flow.

SDD

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