As the economy is worsening, the loan situation for small businesses is following the same pattern. More and more small are businesses being turned down by banks for loans. The banks’ reasoning is that they cannot afford to take any risks on businesses that they are not positive will be successful in the future, and that will be able to pay back their loans with interest. However some businesses are finding sympathetic suppliers who will agree to assist them with their financial problem. Without qualifying for bank financing, entrepreneurs have two final choices for the present. Either pay a high interest rate, that in the future they might not be able to pay off, or find another financial supporter to give them a hand. Times are rough.
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