About 'debt financing for small business'|...soon got into debt. However, as their debts piled up, they tried to escape...son of a Governor, and so they asked for the Li daughters to be ...
The U.S. Congress currently is debating whether to raise the Federal government's debt ceiling. According to Treasury Department, the government could hit its debt limit sometime in May. Apparently there are some technical moves the government could make to put off the day of reckoning a bit further, but without some action, in the next few months, the debt limit could be reached. Although none of us know for sure how the markets would react if this happens, the implications for your small business generally don't appear to be good. Here are a few of the possible effects on small businesses if the debt limit isn't raised. First, some economists believe not raising the debt limit could push the economy into a recession, because government spending would have to be cut drastically. The government would have enough revenue coming in to continue to pay principal and interest due on its debt and, therefore, to avoid default. But it would not have enough revenue to pay all its bills. Spending on big programs like Social Security, Medicare, Medicaid and defense would have to be cut sharply and these cuts would have a ripple effect through the economy resulting in lower consumer spending. For most small businesses, recession means lower demand and, therefore, less revenue and cash flow. Second, financing for small businesses could dry up. The combination of a weaker economic outlook and uncertainty related to government spending could restrict lending except for the highest quality borrowers. Therefore, if your small business doesn't already have secure financing in place, its sources of capital, both short term and long term, could disappear. Third, the cost of capital could rise, so, even if your business has financing in place (such as a line of credit), unless it has a fixed rate that can't easily be changed, you may be paying much higher rates. However, what happens to interest rates if the debt ceiling isn't raised is unclear. While many economists believe rates will rise because of increased financial uncertainty and economic risk, others suggest that sharply falling demand and the resulting recession might actually cause rates to fall. In reality, whether rates rise or fall may be irrelevant to your small business if demand drops sharply, revenue declines and the capital you need isn't available at any price. While no one knows for sure what the specific repercussions of reaching the debt limit would be, since this is uncharted territory for the federal government and for the economic prognosticators, it is hard to envision it as not having negative implications for small businesses in the near term. Sources: Jeanne Sahadi, http://money.cnn.com/2011/02/17/news/economy/debt_limit_spending_cuts/index.htm, What happens if the debt limit isn't raised - February 17, 2011 John Carney, http://www.cnbc.com/id/42686462, What Happens to Bonds If the Debt Limit Isn't Raised - CNBC More from this Contributor: http://www.associatedcontent.com/article/7947633/how_to_find_the_right_small_business.html?cat=3, How to Find the Right Small Business Consultant http://www.associatedcontent.com/article/7936739/fiveyear_checklist_for_a_small_business.html?cat=3, Five-Year Checklist for a Small Business http://www.associatedcontent.com/article/7877720/setting_up_payroll_for_a_small_business.html?cat=3, Setting Up Payroll for a Small Business http://www.associatedcontent.com/article/7845304/find_the_hidden_profits_in_your_business.html?cat=3, Find the Hidden Profits in Your Business |
Image of debt financing for small business
debt financing for small business Image 1
debt financing for small business Image 2
debt financing for small business Image 3
debt financing for small business Image 4
debt financing for small business Image 5
Related blog with debt financing for small business
- sagar9.wordpress.com/...go public.” Debt and Equity Financing: Two Options for Financing Your Small Business Debt and equity financing are two different financial ...
- nycbiznetworking.typepad.com/my_weblog/...this month. But, if all small business owners need is access to debt financing, then it looks...Financing Crisis for Small Businesses...
- freetips-forbusiness.blogspot.com/...insolvency, debt holders take priority over equity holders. For a small business, debt financing has both advantages and disadvantages. On...
- ibloga.blogspot.com/...year barnstorming the country calling for still further tax increases on American business, large and small, investors, and job creators. ...
- mistakesbytjm.blogspot.com/...tight, public debt levels..., for me, a...the minister of finance told... to assist businesses large and small, from the early...
- islamicfinanceandbanking.blogspot.com/...official as well as private institutions for collection and disbursement of Zakat. Shariah ...least, teaching of Islamic economics and finance, and research in related subjects...
- chezodysseus.blogspot.com/...since the S&Ls of the mid-80s; erase the national debt that had been growing...since Reagan’s day; and establish a good precedent for old-fashioned, ‘good’ old American land...
- whattaboutbob.blogspot.com/... in the oil business are currently buying...strongly recommend you buy at least a small stake in one of these...way to get the Japanese to pay for all of their drilling...
- lidaifu.blogspot.com/...soon got into debt. However, as their debts piled up, they tried to escape...son of a Governor, and so they asked for the Li daughters to be ...
- venturebeat.com/...to growth capital. Small businesses drive the U.S. economy... for more than half of... debt financing to established...
Debt Financing For Small Business - Blog Homepage Results
An overview of debt and equity financing for the small business; the advantages and disadvantages of debt financing for your small business
...remove().text() ); } // Expando Mode: start small, then auto-resize on first click + text length...March 26, 2009 » About Hi, thanks for visiting Drop Dead Simple, a site ...
...debt advisers direct debt solutions digital library...news eyeglasses eyewear finance news gambling instructional... GB sign deal for prestigious apartment blocks...
Related Video with debt financing for small business
debt financing for small business Video 1
debt financing for small business Video 2
debt financing for small business Video 3
0 개의 댓글:
댓글 쓰기