Sunday, April 22, 2012

Can businesses into debt find a way out?

 
Maybe. However that’s not the case for all of them.

Many businesses underwent a downturn in profits. Sales dropped because of the economy. Companies that already had debts, today they risk of not having the chance of refinancing. These are the companies that are most at risk, because banks do not give them a penny.
 
It looks ridiculous but the bank chooses to bankrupt a business that it previously financed rather than choosing to refinancing it.

Today bankers only think in short terms because they only care for their quarterly budget to go off smooth.. However this way they don’t bankroll business, as they want to be belts and suspenders with their budget. Thing is in the long range, businesses go bankrupt.
 
Bankers do not understand if they kill the business system they kill themselves too.

Luigi Foscale

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