Tomorrow's New York Times reports that banks are issuing fewer loans to companies and charging more. This increases the pressure on corporate accounting and finance to manage cash flow judiciously; increasing the rate at which receivables are collected and closely managing the rate at which payments are disbursed. It's a good time to be selling corporate payment products that help companies improve their transparency to incoming and outgoing funds.
Excerpt from tomorrow's New York Times:
Earlier this year, credit extended by banks to companies and consumers was still growing at double-digit rates compared with three months earlier, according to an analysis of Federal Reserve data by Goldman Sachs. By mid-June, bank credit was declining at an annualized pace of more than 6 percent.
That is a drop of nearly $150 billion, an amount much larger than the value of the tax rebates the government has sent to households this year in an effort to spur economic activity.
Read more:
Worried Banks Sharply Reduce Business Loans
By PETER S. GOODMAN
Published: July 28, 2008
