by keithold is a prodigal bagger on September 9th, 2009

keithold is a prodigal bagger

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Why aren't companies borrowing?

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Answers. 2 helpful answers below.

  • by krsnaknows on September 9th, 2009

    krsnaknows

    You can borrow if you have something to look forward to.With the depression affecting every industry, they are just trying to stay afloat.Nothing new to offer and servicing the borrowings will be painful now.+

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  • by Floater on September 9th, 2009

    Floater

    2 reasons-First the credit standards have become much tighter. Banks hesitate to lend $$ unsecured for working capital-and recently, when they do, the covenants are much stricter. Second-in a slow economy, companies do not want to floor a lot of inventory, so why borrow the $$ to build it.

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