It's the Borrower, Stupid...
The chiefs of cash-starved companies would have you believe that bankers are (a) too dim-witted, (b) too terrified of the regulators, or (c) too darn lazy to make a loan to their "jewel of a company." But do CEOs ever allow for their role in their financing travails?
A survey of nearly 400 CEOs of growing businesses suggests that, privately, some do; many of the respondents put most of the blame on borrowers. Here are what they cited as the main reasons borrowers say they have trouble with banks:
Percentage of all respondents
Poor management 13%
No history of profitability 10%
Inadequate business plan 10%
Poor credit history 4%
Limited capital/collateral 4%
Too much debt 4%
Source: "Trendsetter Barometer," Coopers & Lybrand, New York City, September 1993.* * *