I think the financing angle is all just wrong.... and that what you're really experiencing is a just a "return to normal financing"... You actually have to show you can pay a loan back... there are percentage of income calcs that went out the window with all the phony come on teaser rates and no doc loans.
When I owned a business the bank would make us do a audit... and an audited inventory. They held our feet to the fire. We used to have to "clean up" our line of credit for 30 days (in other words pay it off) every year. We had lunch once a month or so with our banker and it usually included our accounting firm management. They watched us like a hawk. We had 750K in cash on deposit - and a one million dollar revolving line. This was in 1975 and our sales were 3.5 million a year - with a 63% gross margin. We were hugely profitable and had very positive cash flow. They didn't trust us one bit.
Now - for someone to say they "can't get credit" - that only means they don't QUALIFY under the CORRECTED real world credit we have returned to. People typically are "needing" credit to bail themselves out - not to "expand" - or to take advantage of an opportunity. They're needing credit to EXIST. They're already over-extended or have a lack of assets and a lack of capital (aka cash on hand). There used to be a saying - you can get credit if you don't need it. That actually was ALWAYS TRUE until this crazy credit came about.
When I "grew up" you couldn't buy a house unless you had AT LEAST a 20% down payment - and you QUALIFIED for a fixed rate 30 or 15 year mortgage. They did a REAL credit check - and if you were late paying the electric bill once - you had to document why. The fixed rate was designed so that you knew EXACTLY what your payment was going to be - and so that over time - the percentage of your income that made that payment was LESS not more.
You walk into a bank now - and your credit cards are about maxed or carrying large balances -- your house payment is 40% of your gross -- your business revenue is down -- you owe on 3 cars.... Guess what... NOBODY is going to loan you anything. And they shouldn't because you can't pay it back -- and CREDIT means that you can pay back - not just borrow more. Sorry.
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