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Credit Crunch: Myth or Reality?

After months of dire predictions and pessimism in the press, the realities facing businesses today are starting to become clearer – and more positive.

Capital for equipment is far more available than many business owners realize. In a summer filled with bad economic news and complaints about tight credit, many companies are still obtaining capital to invest in equipment they need, according to the Philadelphia Inquirer.

The deciding factor seems to hinge on past credit history. "Companies who pay their bills are able to borrow money," said Kevin Blakely, chief executive of the Risk Management Association based in Philadelphia. That sentiment was echoed by Valerie Jester, owner of Brandywine Capital, and a veteran of the equipment financing industry.

"While the market is clearly adjusting to changing conditions," Jester said, "businesses that have successfully borrowed for equipment financing – and who have a good record of repayment – continue to be approved every day. Many people are moving forward and acting on opportunities to grow their businesses. And the outlook is better today than it's been in months."

"The key for business owners," Jester added, "is to stay connected to your lenders. Keep the relationship fresh. Keep them informed about how your business is doing, what your opportunities are. Stay in front of them. They continue to need to lend money — that’s how they stay in business — and by keeping the relationship strong, you'll move to the top of the list of transactions they want to complete."