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It doesn't discourage loans. Fast growing small companies are one of the only constituents who can justify higher interest rates. Now giant companies and indivi
by sbinthree 8y ago
It doesn't discourage loans. Fast growing small companies are one of the only constituents who can justify higher interest rates. Now giant companies and individuals going on vacation get cheap credit but small businesses mostly can't get any.
- skybrian 8y agoThis seems odd, because it seems like if a business is willing to pay a bit more when interest rates are low, it would mean more profit for the bank willing to take the other side of the deal.
- sbinthree 8y agoYes, the spread would be better, but banks don't do it unless you have several years of high cash flow and positive on-paper income. Even if the owner is deliberately trying to offload the income into another corporation, they can't figure it out and say the income statement looks bad. Banks don't even understand small businesses at this point.