Until credit markets recover, loans will
remain difficult to obtain for
all but the strongest businesses.
Recommend Factoring to your clients with
Commercial Accounts Receivable
on their books as a way
to bridge this gap.

Why business can't get a loan
If your business can't get a loan, blame the shadow banking system.
So says Vikram Pandit, chief executive of the anything-but-small Citigroup.
The collapse of the market for securities and bonds used to raise money at finance companies like CIT
Group "hurts most in the small and mid-sized business area," Pandit said in remarks to the Chicago
Tribune editorial board earlier this week. "That's the place we all need to continuously look, because
that's where the jobs come from."
While banks like his mostly use deposits to create loans, companies funded mainly by capital markets
have been unable to find the bucks, he said. "That's where there's a credit-creation crunch in the
industry."
So naturally Citigroup will seize the opportunity to step into the void, making all the loans that otherwise
would have been made by the CITs of the world, right? Not quite.
"The credit creation cycle is not going to be as fervent as it was," Pandit said.
For more information on Factoring Contact:
Chris Lehnes
203-664-1535
clehnes@VersantFunding.com