How to Get a Loan - Below Prime

Article Abstract:

An individual company, which is small to medium sized and is borrowing less that $25,000, would have to pay interest rates of up to three points above the prime rate. A large corporate borrower, on the other hand, who borrows upwards of one million dollars, might be able to borrow at almost two points below prime. A group of small business owners around the Maryland-Washington, D.C., area thought this arrangement was unfair, and decided to do something about it. They formed the Association for Small Business Advancement (ASBA) which now has 150 member businesses. Then they found a bank that would handle their account. All of the companies have their own separate checking accounts with the bank, yet when it comes to getting a loan, any of the ASBA members get treated like a large company, and receive preferred interest rates. As banks begin to realize that more of their revenues are dependent on small businesses, they might consider making such arrangements with other small business groups.

Author: Reynolds, L.
Publisher: JG Press, Inc.
Publication Name: In Business
Subject: Business, general
ISSN: 0190-2458
Year: 1984

User Contributions:

Comment about this article or add new information about this topic:

CAPTCHA

Profits - Not So Perky in 1984?

Article Abstract:

Slower productivity growth is slowing down profit growth to eight per cent. A revival in economic activity, an easing of cost pressures, productivity gains and higher stock appreciation have led to improved profitability. Other trends are detailed. The impact of these trends will affect the banks and interest rates.

Author: Spencer, H.
Publisher: Director Publishing Ltd.
Publication Name: The Director
Subject: Business, general
ISSN: 0012-3242
Year: 1984
Profit, Profits, Statistics, Growth

User Contributions:

Comment about this article or add new information about this topic:

CAPTCHA


Subjects list: Economic aspects, Interest rates
This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.