When easy credit even first began it was perplexing to many. Why were lenders trying to entice consumers who had little or no credit or even consumers with bad credit to borrow money from them? Lenders could make more money by lending money or extending credit to people who could not afford it and who had bad credit in the first place. Doesn’t seem like a very ethical practice, but perfectly legal. But like all things in life, what goes around comes around and as the New York Times puts it “Bam! Easy Credit Evaporates, and so Does the Buyout Frenzy!” If you have watched the news of looked at any newspapers lately you will see they are full of stories about Wall Street, the credit and debt market and the housing market and it isn’t likely to go away any time soon.
This means you must be more careful than ever with extending credit and staying on top of your customers. Be aware of what is going on with Wall Street, lenders and interest rates so you can stay on top of your business finances and not end up with more bad debt!
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