Big Banks Still Lend Small Businesses Less Than a Decade Ago

Not that long ago, small businesses had personal relationships with their local banks. But that was before the financial crisis of 2007-08 and the global economic collapse, followed by the consolidation of many institutions into fewer and fewer banks. Today’s banks, more often than not, are national or multi-national entities that don’t see enough profit … Read more

A Turn in the Weather for Economic Outlooks

U.S. finance executives continue to be frustrated by government actions affecting their costs, leery of the ups and downs in equities markets, and nervous about economic conditions overseas — especially in China.This combination appears to finally be taking its toll on business confidence, according to the results of the Duke University/CFO Global Business Outlook survey … Read more

CFOs List Economic Uncertainty and Competition as Top Concerns

Finance is at the center of business, and CFOs are well-positioned to help guide strategy, according to a new survey by cloud performance management company Adaptive Insights. The 2015 CFO Indicator showed the majority of CFOs plan to take on more strategic leadership roles (69 percent) and cite a culture of analytics as a key … Read more

Underestimating Operating Model Can Be Barrier to Success for Businesses

The vast majority of U.S. companies are transforming their businesses, yet nearly one-quarter fail to realize the optimal value of their initiatives. Underestimating the significance of the operating model was identified as the greatest barrier to success, according to a new report, Business Transformation: Driving the Optimum Value, from KPMG LLP, the U.S. audit, tax and … Read more

Understanding Your Firm’s Brand

It’s not about logos, slogans, or packaging. It’s about keeping promises. Of all the assets your business owns, your brand is one of the most valuable and the most elusive. Without a strong brand identity, your firm is like a wallflower at the prom, sitting in the margins without a story or a voice to … Read more

Lease or Loan? 10 Considerations When Acquiring Equipment

As the economy continues to improve, more manufacturers are making capital investments to fuel their growth. When business owners and managers consider acquiring equipment, they often think of their payment option as a lease vs. buy decision. In any economic environment, when preserving owner or shareholder capital is an important goal, financing equipment through a … Read more

Only the Most Profitable Need Apply?

As compliance with Basel III makes capital more expensive, big banks are trying to be more selective in the companies they lend to, says new research.  Sharp increases in capital costs resulting from Basel III reserve requirements have forced the largest global banks to become more selective about who they lend money to, according to … Read more

U.S. Companies Turning to Non-Bank Providers for Credit

A growing number of small businesses and middle market companies are obtaining credit from non-bank providers. The most troubling news for banks—and possibly for regulators: nine out of 10 companies that borrowed from these alternative lenders say they’ll look to tap non-bank providers for credit again in the future.  Get the report from Greenwich Associates.

Lenders Need to See Behind the Curtain

These days lenders are wary of certain borrowers. There is more of a necessity from the borrower to show that the risk of loss is low. Asset-based lenders have to take steps to evaluate borrowers and reduce the risk of lending, with the ultimate goal being a successful and long lasting relationship between the two. Due … Read more

Why Business Loans Get Denied

As reported in today’s Forbes article, a recent Pepperdine University survey of business owners shows that among the smallest businesses (those with less than $5 million in revenue) that sought a bank loan in the previous three months, 39 percent were successful, compared with 34 percent in a fall survey. Even so, it remains harder for smaller … Read more