How Retailers Avoid The Credit Crunch
Protecting cash and credit during an economic downturn is a matter of survival: Squander your cash or credit power, and you’re dead.
Money is just not flowing in like it used to. Not only are consumers more hesitant to spend, lenders are more hesitant to loan to just anybody. Unfortunately, most retailers find themselves stuck in the middle of the dilemma. While the impact of consumers’ recent belt-tightening can be immediately felt, tightening in the credit market has been more subtle but no less significant.
Dealers such as Abt Electronics in the Chicago area, Starpower Home Entertainment Systems in the Dallas market and DataVision in New York City report business as usual, with no major changes to their credit power or vendors lines of credit. DBL Distributing reports business is up and no evidence of a credit crunch hitting its dealers.