January 20, 2011
A recent article by The Wall Street Journal’s Emily Maltby reported that according to data collected by the research and advisory company Greenwich Associates, only 15% of small businesses feel that credit conditions have improved.
A recent trend indicates that collateral seems to be the the first factor banks are looking at when deciding which businesses to evaluate for a loan. Companies that hold tangible assets seem better positioned to get loans.
Banks agree that collateral is increasingly giving some small businesses an edge. Prior to the recession, banks were issuing “a great deal” of unsecured loans but they rarely do today, says Craig Calafati, senior vice president and national sales manager of Celtic Bank in Salt Lake City.
To read the complete article go to: Firms With Collateral Gain an Edge