Severe delinquencies by small and medium-sized U.S. businesses on the loans, leases and lines of credit to finance capital equipment rose again in November as lenders remained reluctant to extend fresh financing, PayNet Inc reported on Monday.
Accounts behind 180 days or more, and unlikely ever to be paid, rose to 0.91 percent in November from 0.87 percent in October, according to PayNet, which provides risk-management tools to the commercial lending industry.
It was the 22nd consecutive monthly increase in loans so far in arrears they ultimately may have to be written off by lenders.
Accounts in moderate delinquency, or those behind by 30 days or more, rose in November to 4.33 percent from 4.19 percent in October, according to PayNet.
Clearly, the "turnaround" in the economy has simply been a government induced recovery of its favored sectors, autos, investment banks etc. Small and medium-sized businesses are being squeezed by the distortional method the US government is using to direct money flows. (more)
A good alternative cash source for small businesses is a business cash advance (it's also good for the lender making it a win-win) It’s cash given up front to businesses when they need it, and is based upon the cash flow from monthly credit card sales charges. They don’t have to make monthly payments like with small business loans; instead small debits are automatically taken from batched credit card sales which makes repaying the money much easier.
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