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.
Worried Banks Sharply Reduce Business Loans
By PETER S. GOODMAN
Published: July 28, 2008