This morning our friends at The Coleman Report shared some stats out of the Pepperdine Private Capital Market Project report. It’s a study of all major types of funding and contains survey data about what bankers have seen in lending trends.
Among other things, one stat stands out for me:
“Over the last 12 months, [lenders report] seeing decreased credit quality of borrowers applying for credit, with an increase in demand for business loans, leverage multiples and focus on collateral as a backup means of payment.”
This is a tough trend for businesses, especially small business owners. Increasingly, they’re forced to leverage their business or provide personal guarantee–all because their credit isn’t healthy enough.
Big take-a-way for me: Start being proactive about watching and managing your personal and business credit early, before you need to use it. Getting backed into a corner by bankers is no fun at all. 🙂
Delve deeper into the Pepperdine study here
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