Business Financing For 2011 Starts With A Bang

‘Business Financing Activity High At Start Of 2011″

While the new year always starts with a certain amount of renewed hope and optimism, the business financing activity at the start of 2011 has been very high to say the least.  If the first ten days of 2011 is any indication of where the year is going, we should be in for a pretty good year.

That being said, I should clarify what I mean by the early on business financing activity I’m speaking to.   This is coming from business owners and entrepreneurs actively seeking business business financing facilities.  This could be for new projects or carry over efforts from last year.  In order for this initial flurry of activity to translate into economic activity, there is going to need to be willing participants on both sides..ie borrowers and lenders.

The potential borrowers are certainly doing their part.  It remains to see how lenders will respond to requests in the new calendar year.

In 2010, lenders and investors could be characterized as  cautious and conservative throughout the year, trying not to make any mistakes in an economic turnaround that was hard to predict by industry sector and region.  Last year also saw a continued retraction of the retail space as more lenders either left certain markets all together or went out of business due to failed porfolios.

In 2011, it will be interesting to see what the business financing mood will be like from the sources of financing as well as who will move forward to take on market share that has basically be vacated by competitors.

And one thing to know about the financing market, if this initial flurry of activity translates into funded projects, the action is likely going to continue as word gets around that money is starting to flow more freely.

The corollary to this statement is that nothing much has changed and all this new activity could fizzle out in the coming months, dampening the plans and aspirations for many for the coming year.

The next two months will be a key barometer for how the rest of the year will play out as without an increase to the available money supply for business activity, the economy in general can only progress so fast.

Hopefully the trickle of 201o can turn into a more steady and predictable flow in 2011.

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About the Author Brent Finlay