It appears that a fair number of banks are making it easier for companies to get loans these days. This is what a recent survey by the Federal Reserve suggests.
The survey polled senior loan officers from 72 U.S. banks. The results indicate that over 10 percent of banks loosened their business loan terms and standards for small businesses in the second quarter. Such easing was even more common when it comes to large businesses, with around 17 percent of banks reporting such easing for these companies.
Why are banks doing this? Common reasons given for such easing include increased competition, increased risk tolerance and a favorable economic outlook.
One wonders how long this trend of easing business loan terms and standards will continue and what impacts it will have on the behavior of companies when it comes to such loans.
Business loans can be an important source of financing for small businesses. They can help companies with getting started up and with funding things such as growth projects.
However, such loans can sometimes turn from a source of help into a drag on a company. When a business’s debt load becomes too big or shifts to being unmanageable due to an unexpected turn of events, it could endanger the overall well-being and goals of the business and its owner(s).
When small business owners encounter business debt troubles, they may have many questions about what they can do to preserve their goals in the face of these struggles. Which of the debt relief options out there would be a good fit depends on a business owner’s unique goals and circumstances. Small business bankruptcy attorneys can assist business owners with their efforts to find the right debt relief solution.