Working Capital

Consumer delinquency still high, but slowing

Capital Solutions Bancorp — Fri, 24 Jul 2009 00:00:00 -0400

Consumers are still buried in debt but may be starting to dig themselves out, said a recent report by Moody's Investor Service.

Reuters reported this week that the U.S. credit card charge-off rate - a measurement of loans that are expected to be defaulted - is at an all-time high, but has shown the slowest rate of increase in six months.

SMBs should look inward to survive recession

Capital Solutions Bancorp — Thu, 23 Jul 2009 00:00:00 -0400

In such a difficult economy, it is tempting to blame economic conditions such as the credit crunch or the lack of consumer spending as major culprits in the increasing number of small business failures.

Back-to-school spending expected to increase in 2009

Capital Solutions Bancorp — Wed, 22 Jul 2009 00:00:00 -0400

Small businesses and retailers concerned with their working capital may soon see some relief, as a recent survey by Deloitte found that consumers will be guarding their spending a little less intensely this back-to-school shopping season.

The survey found that 64 percent of consumers plan to reduce their spending on back-to-school items this year, compared to 71 percent who did so in 2008.

Recession may be easing, index indicates

Capital Solutions Bancorp — Tue, 21 Jul 2009 00:00:00 -0400

The economy may recover sooner than previously expected, and possibly as early as later this year, according to the most recent Conference Board Leading Economic Index (LEI).

The June index, released this week, rose for the third consecutive month, with a 0.7 percent increase.

The LEI's six-month change has risen to 2 percent - which represents an annual rate of 4.1 percent - compared to the -3.1 percent change from the previous six months, which had marked an annual rate of -6.2 percent.

SMBs scramble for alternative lending as CIT seems likely to fall

Capital Solutions Bancorp — Fri, 17 Jul 2009 00:00:00 -0400

Small businesses are waiting with bated breath to learn the fate of one of their leading lenders, CIT Group Inc.

With the announcement early this week that CIT was racked by a liquidity crisis and approaching bankruptcy, many feared that the impact of its fall would send shock waves throughout the small business community, and consequently the economy as a whole.