Business Financing Problems and Risks

Business financing is increasingly impacted by a series of problems and risks. In some cases these are the same old problems, but the most difficult obstacles are due to changing factors that are preventing most small business loans by banks. These small business financing risks and problems will not disappear due to a more prosperous economy as some observers have suggested. There will need to be fundamental legal and structural changes to the banking system to restore bank participation (in making commercial loans to small businesses) to a healthy level. In the meantime small business owners should be prepared to find new business financing sources and alternatively to reduce commercial debt.

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