Significant Slowdown in Lending Causes Increase in Business Debt Defaults, Says Valcor
No rebound is truly possible if capital cannot be provided by banks to small business. The severe slowdown in accounts receivable are causing loan applications to banks to be turned down. Alternative capital sources now needed and are being provided through Valcor Licensees.
Vancouver, BC, Canada, November 17, 2009 --(PR.com)-- While the current news suggests an economic recovery is in the works, the small business owner is finding capital acquisition a harder task than ever before.
The smaller businesses, which incidentally hire most employees, are suffering. They are not receiving much needed loans to fund their business operations, secure new equipment, hire new personnel, and shore up bad accounts receivable.
According to Equifax (11/02/09) “Commercial bankruptcies among the nation's more than 25 million small businesses increased by 44% from the third quarter of 2008 to the third quarter of 2009.”
The primary concern for small business is cash flow. Receivables have slowed dramatically. Valcor Arbitration Services, which provides business Debt Restructuring and Mediation to small businesses, have seen a dramatic increase in the number of cases throughout North America.
Valcor CEO David H. Sussman, M.A. states "the normal daily challenges facing small businesses have now been dwarfed by a tremendous slowdown in cash flow. Clients are extending out payments from a normal 30-60 day cycle to 90-120 day and even further. This is having a damaging effect on the small business as they need capital to invest in product and services, payroll, marketing and new product development. Now businesses are simply in survival mode."
Mr. Sussman continues "The biggest problem is that many of these businesses cannot secure financing from their dependable sources such as their established banking relationships. Banks are lending at the lowest level in years as they are extremely risk adverse. So along with the slowdown in receivables, the shutdown in business loans, and the economy still suffering from the effects of this recession, the small business owner is experiencing the perfect storm."
Valcor has been proactive with it's clients and sought out alternative lenders which are seeking to lend money to established businesses. While some of these funds are North American based, with the decline in the U.S. dollar, Valcor has sources that are international in nature.
This has provided Valcor's clients the ability to secure much needed capital at competitive terms, when they were originally turned down by their local community lenders.
Mr. Sussman suggests to any business seeking to increase cash flow to contact Valcor and a Senior Consultant will provide a no-obligation consultation. Valcor never charges any upfront fees for it's services.
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The smaller businesses, which incidentally hire most employees, are suffering. They are not receiving much needed loans to fund their business operations, secure new equipment, hire new personnel, and shore up bad accounts receivable.
According to Equifax (11/02/09) “Commercial bankruptcies among the nation's more than 25 million small businesses increased by 44% from the third quarter of 2008 to the third quarter of 2009.”
The primary concern for small business is cash flow. Receivables have slowed dramatically. Valcor Arbitration Services, which provides business Debt Restructuring and Mediation to small businesses, have seen a dramatic increase in the number of cases throughout North America.
Valcor CEO David H. Sussman, M.A. states "the normal daily challenges facing small businesses have now been dwarfed by a tremendous slowdown in cash flow. Clients are extending out payments from a normal 30-60 day cycle to 90-120 day and even further. This is having a damaging effect on the small business as they need capital to invest in product and services, payroll, marketing and new product development. Now businesses are simply in survival mode."
Mr. Sussman continues "The biggest problem is that many of these businesses cannot secure financing from their dependable sources such as their established banking relationships. Banks are lending at the lowest level in years as they are extremely risk adverse. So along with the slowdown in receivables, the shutdown in business loans, and the economy still suffering from the effects of this recession, the small business owner is experiencing the perfect storm."
Valcor has been proactive with it's clients and sought out alternative lenders which are seeking to lend money to established businesses. While some of these funds are North American based, with the decline in the U.S. dollar, Valcor has sources that are international in nature.
This has provided Valcor's clients the ability to secure much needed capital at competitive terms, when they were originally turned down by their local community lenders.
Mr. Sussman suggests to any business seeking to increase cash flow to contact Valcor and a Senior Consultant will provide a no-obligation consultation. Valcor never charges any upfront fees for it's services.
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Contact
Valcor Arbitration Services, ULC
Jennifer Sloan
877-282-5267 ext. 130
http://ValcorWorldwide.com
Jennifer Sloan
877-282-5267 ext. 130
http://ValcorWorldwide.com
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