Credit Squeeze Affects Small Business

The banks encouraged small business owners to get into this mess (with easy credit and low interest rates) and they are going to prolong it by cutting limits and raising rates. And there are virtually no other options for small business owners....other than paying cash.

And if your clients don't pay for 30 or 60 or more days, then a huge financing gap occurs. That gap, in the past, has been covered by credit cards and unsecured credit lines that banks handed out like lollypops as recently as 18 months ago.

I'm not saying each of us aren't responsible for our actions. But business owners make calculated risks. We ask: Should I go into debt to start up a new company? What happens if I fail? And what happens if I never attempt my dream? Every business owner starts out thinking they have the best new idea or service to offer the buying public. If we didn't believe that, no one would go into business.

So we take that "leap of faith". We may use a credit card to finance the startup or inventory purchase...because we know that if we don't take that chance, we'll never see the reward.

Now, however, the risk is even bigger. This country was built and continues to run based on innovation and the work ethic of small business owners.

Bankers: we need you to recognize that without us, you don't have a business. Find a way to be innovative and proactive with business owners. Your future and ours is at stake.

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