The Places They Go When Banks Say No

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Summary	The Places They Go When Banks Say No
Category	Financial Statements
New Business Economy Idea	" ... But like many other business owners, Mr. Levy saw his prospects change drastically in 2008 as the financial crisis unfolded. The Sharper Image and several other top customers filed for bankruptcy, and Mr. Levy found himself scrambling to keep the business afloat. His longtime bank wanted nothing to do with his company, Mr. Levy says, and several other banks spurned his loan requests, too. After a year of hand-wringing, he found an unconventional lender that was still making loans — lots of them. It's called Hartsko Financial Services, and it provides short-term credit to small and midsize companies that sell everything from olive oil to women's sandals. In the last year or so, companies have been beating a path to Hartsko, and to other businesses like it — even if the loans are vastly more expensive than traditional ones from banks. Richard Eitelberg, Hartsko's founder and president, said his company previously fielded many loan requests from companies on the financial brink. Now, he says, Hartsko can also pick from companies with solid financials that simply can't get a bank loan. "What we are seeing is better deals than we did in the past," Mr. Eitelberg says. "We were viable when banks were lending. Now we are overwhelmed." ... "
Webpage	More info
Author	Editor
Date	1/30/2010