The Challenging Credit Picture

22nd December 2010 · 0 Comments

Although we’re given good news about the economy, it seems like it is sometimes coupled with bad news. For example, credit markets are returning, but some companies have struggled or are still struggling to the point of filing for bankruptcy. As this WSJ article reports, even with the good news, midsize companies that can’t borrow at a large enough scale to interest investors and companies that are burdened with the weakest credit ratings will still struggle. This forces them to restructure. From January to September of this year, 43,016 businesses filed for bankruptcy, keeping business bankruptcy levels at the highest since the 1990s. Media and entertainment, oil and gas, retail and restaurant industries are the ones that are struggling the most. The question posed by the article is this: Will interest rates remain low enough so that credit markets remain open, allowing companies to continue to refinance and avoid restructuring?

Despite the occasional bad news, continuous improvements in the economy make the outlook for the New Year look more promising. And, of course, Far West Capital is here for your traditional and non-traditional financing needs or if you have questions about financing.

Cole Harmonson is the president and CEO of Far West Capital, providing working capital to businesses throughout Texas. He can be reached at 512.527.1100 or cole@farwestcap.com

About Jason Myers

Jason Myers is the editor-in-chief of the Texas Entrepreneur Network and can be reached at jason@txenetworks.com

Readers Comments (0)

A Career Guide For a New Generation of Change Makers
Billy Parish and Dev Aujla’s new book, Making Good: Finding Meaning, Money and Community ...

Bagels by the Batch
What’s with all the hype about “Artisan Bagels” by Dunkin' Donuts? Does anyone even ...

Understanding the deal from the Investor’s perspective
The entrepreneur and the investor both look at the same deal but they come ...

Entrepreneur Events: OpenCoffee
Today’s OpenCoffee brought new and familiar faces to CoffeeGroundz. For the uninitiated, OpenCoffee is ...

It’s Facebook Week…
A few weeks back I wrote a post asking where are the Facebook startup ...

Mass Relevance Secures $3.3 Million Series A
Mass Relevance, the technology leader in social curation and integration, today announced that it ...