Today’s Wall Street Journal reports that more lenders are tightening their credit standards because they are feeling the sting of missed payments and losses of loans they gave out to small businesses.
Tightening their lending standards helps them to reduce risks on future loans but not on the loans they have already given. Some banks are offering enticements such as free online payroll services and easy access to health insurance, both things every small business owner can benefit from.
Money is simply less available right now. Make sure to look over your credit policy and credit standards and make sure you aren’t extending credit where it isn’t due. This will only end up costing you money and time in collection efforts.
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