It's a Difficult Time for Small Businesses

Banks are cutting down on business loans and Small Business Expert Brent Garrett says he hears it. "I just talked to a small commercial lender. He said, 'Hey, look, we're got reduced risk tolerance and concerns about liquidity. That's just fancy words for Small Business folks for 'WE'VE JUST RUN OUT OF CASH!'"

Garrett says those still making it have some things in common including: "They are probably looking for more business that doesn't .require a long term for getting paid. They get lean with their expenses. And they're preserving their cash!" Garrett reminds them that this down-swing will end but right now lending standards at banks are tighter than before and small businesses are paying the price. Some credit lines are cut and there are higher borrowing costs and stricter questions from their bankers.

America's Top Small Businesses

Garrett says those still in the game are delaying growth plans and should evaluate their staff. "They've just got to take a big, deep breath, look at their team and see if they have got anybody that you might think about sending them on to another firm." Higher interest rates are making cash seem even more precious. Garrett says most of all --- protect your confidence.

Brent Garrett is the author of Swirling Down the Drain to be released soon.

photo:Getty