There has been so much in the news lately about business credit and finance that it’s hard to keep up with it all. But much of this information is important for business owners to read, so we have decided to do a regular “roundup” of business and financial news.

Risky Business Gets No Love
No, I’m not talking about Tom Cruise’s teenage shenanigans in the 1980’s hit movie Risky Business. In this sense, I’m referring to businesses with risky profiles, as viewed by lenders. According to a recent article in the Wall Street Journal, many of the major lenders in this country are investing in what they see as “less-profitable but steadier” types of businesses.
Read the full article at WSJ

Like Sands Through the Hourglass - Subprime Drama Continues
Many other lending giants are posting major losses that can be tied back to the subprime meltdown of last year (and this year, and next year?). Wells Fargo posted a 38% drop in the fourth quarter, largely due to credit losses associated with the mortgage fiasco.

Consumer Spending Down, Naturally
Recent rate cuts by the Fed are not having the desired effect (desired by the Fed, anyway). It’s also unlikely that any tax rebate program is going to spur consumers and stimulate the economy. The New York Times spells out the scenario, and what it means to business credit and finance in general. Here’s my question … how much stimulus will a $300 rebate check produce when it costs nearly that much to fill up your car with gas two or three times?

But It’s Not All Bad News
Companies like Far West Capital are in a position to help many businesses with accounts receivable systems in place, even while other lending channels are drying up. We are an asset-based financing company, which gives us a certain amount of flexibility that many lending channels no longer have. We use this flexibility to find the best financing option for our customers.

If you operate your business under some form of accounts receivable system — and you’d like to learn more about our A/R financing programs and how they might help you — please contact us.

This entry was posted on Thursday, January 31st, 2008 and is filed under Business Financing.