A lot of people use the "credit crunch" to explain everything that's wrong with the economy. But tighter lending standards are just one reason companies are borrowing less from banks, according to a recent survey of small companies conducted by the AICPA. The survey of 2,000 private businesses with revenues of less than $25 million showed that about 40% of the companies had not borrowed from banks in the 12 months prior to the survey. Below, their explanations:sourcesstandards
| South- | Mid- | South- | North- | ||
| West | west | west | east | east | |
| Rates too high | 10.8% | 14.3% | 3.0% | 5.0% | 7.7% |
| Have other capital | 16.2 | 7.1 | 6.1 | 25.0 | 19.2 |
| Tighter bank | 5.4 | 14.3 | 21.2 | 15.0 | 26.9 |
| Don't borrow | 29.7 | 28.6 | 21.2 | 35.0 | 11.5 |
| Don't need capital | 51.4 | 28.6 | 51.5 | 20.0 | 34.6 |
Source: American Institute of Certified Public Accountants, New York City, 1991.