The Basics Of Business Lending
With the markets showing signs of calming this week, I have received several calls asking for more detail about the credit markets and why banks are refusing to lend to each other and why business loans are still not available. The fundamental reasons can be found in a thoughtful consideration of the reasons and basis for lending.
The reasons and incentives for business to lend to each other are rooted in one of two basic categories—a fundamental basis or a prospective...