Ask anyone who has tried to start a business over the last five years, or has been in business for a while, and he or she will tell you that this has been an extraordinarily tough environment. Yes, there are those for whom capital is not an issue, but these are the exceptions. Even long-existing companies have seen their lines of credit reduced, or eliminated overnight, by banks claiming that they were required to do so by regulators. When banks are told to reduce risk, small businesses, especially startups, are the first to see credit levels reduced—and lenders claim that this is an appropriate response to new regulatory guidelines.
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- Startup Financing Environment
William Michael Cunningham
- Chapter 2