Financing Solutions in a Tight Credit Market: Preparing Your Franchise System During the Current Lending Environment is More Critical Than Ever (Franchise Financing: Where's the Money?)
Franchising World 2008, Dec, 40, 12
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- $5.99
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- $5.99
Publisher Description
Over the past several years the lending environment has been extremely complacent. As we all know, the credit crisis has escalated to unprecedented proportions and has created gridlock for all business owners seeking to access capital. Our lines of credit, home equity and credit card limits are being reduced. The Federal Reserve has been pouring liquidity in the markets to try and unfreeze the lending system. Banks and commercial lenders are tightening their belts to focus on shoring up their own balance sheets; several lending institutions around the world are in survival mode. In the late 1990s and early 2000s, consumers and business owners experienced similar tight lending environments, each time triggered by various events. Although the cycle seems to re-occur every eight to 10 years, most researchers think this time is much different, as several large corporations such as Bear Stearns, Fannie Mae, Freddie Mac, Lehman Brothers and Washington Mutual have all faltered in a span of four months.