 |
Lock in savings now before June 1 rate increase! |
 |
Credit – for better or worse, it's how a lot of us do business in the U.S.
Since the financial market collapsed two years ago, banks have kept a tight line on extending credit, and often small businesses suffered the most. If they didn't use their credit lines often enough – as was the case with a friend of mine who owned a print shop – those lines were reduced or closed. If they used them too much, they could be called in by the banks for immediate repayment.
| We
Deliver Distribution News to Your Inbox Sign up below to receive MDM Update, your free weekly distribution news update by email. |
For distributors, the plummeting value of inventory and property and slow pay from customers put further limits on what banks that were willing to lend were actually willing to lend. (See Credit Crunch Continues to Hurt Channels from the 2010 Distribution Landscape Report.)
That said, there have been signs that the trend may be shifting. A recent article in the Wall Street Journal revealed that several banks – particularly large national banks – have introduced what's being called a "second look" program to provide individual review of rejected applications. These second reviews allow loan officers to give more weight to factors such as existing relationship and history with the customer, rather than solely focusing on current conditions.
And the latest Senior Loan Officer Opinion Survey on Bank Lending Practices released by the Federal Reserve Board in August indicated that domestic respondents reported easing standards for lending to small firms for the first time since 2006.
Not everyone is optimistic about the impact such programs will have. The WSJ article cites William Dunkelberg, chief economist of the National Federation of Independent Business, as believing "second-look programs are aimed more at rehabilitating banks' public-relations image than at making new loans." Last month's NFIB Small Business Economic Trends report may support that belief. Survey results showed that borrowing levels remained at a near record low.
 |
 Download
the Top 40 Industrial List -FREE |
| View the Top Distributors in 12 Sectors: | |
| 2011 Distribution Landscape Report: Access Now | |
Join MDM's Independent Distributor
Network 
Follow MDM on Twitter
 Critical Profit Driversin Distribution Al Bates, Profit Planning Group, speaks frankly about the most important factors to driving profit. Watch now. iPad users: click here to view. |
 Economic Update:Behind the Moderation MAPI Economist Cliff Waldman discusses some of the factors behind the slowing economic recovery. Watch now. |
 7 Minutes With ...Bell Electrical Supply CEO Burt Schraga discusses the importance of building a strong culture in his organization. Watch now. |
More Audio and Video Features from MDM: |
Think About It: |
|
Training Resources
 |
 |
 |
 |
|||
|
Featured Article: What AmazonSupply.com Means for Independent Distributors $34.95 |
Inventory Management Best Practices with Jon Schreibfeder: DVD + Book $119.00 |
The State of E-Commerce and Catalogs in Distribution $44.95 |
Benchmarks & Best Practices: The Answer Book for Growth-Minded CFOs & Controllers $249.00 |
| Title | Company | Location |
|---|---|---|
| Digital Strategy Manager | Border States Electric | Fargo North Dakota |
| Risk Manager | Border States Electric | Fargo ND |
| Purchasing Manager | PCA SKIN | Scottsdale, AZ |
| BUSINESS DEVELOPMENT MANAGER | Graybar Electric Company | Denver, CO |
| INDUSTRIAL OUTSIDE SALES REPRESENTATIVE | Graybar Electric Company | Phoenix, AZ |
| General Manager | Applied Industrial Technologies | Norfolk, VA |
| Rubber Specialist | Applied Industrial Technologies | Baltimore, MD |
| View ALL Wholesale Distribution Job Listings |
|
|
 |
|
|
|
 |
Leave a Comment