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Post by propman on Apr 3, 2016 11:19:54 GMT
For myself, I like to lend to businesses for expansion. Either to buy new plant or fund new premises or to cover working capital. I tend to avoid businesses that are apparently borrowing to stand still, and there seem to be rather a lot of these. Where is the light at the end of the tunnel? Is the business just hoping for better things? Working capital is generally the reason why companies go bankrupt as they don't have sufficient funds to meet their outgoings. It is also the term used when they want further funds to cover losses! The trouble is that we will never have access to as much information as the company's main banker. You never know whetehr they are seeking funds elsewhere just because their bank is expensive or because they have turned them down on good grounds.
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