Interest rates are up, but there's good news: growth companies continue to win new bank financing at the robust clip they've maintained since early 1993, when rates were about a percentage point lower. Product-sector companies led the pack -- 40% arranged new financing during the second quarter of 1994, but only 26% of service-sector companies reported new loans in that period.

Percentage of applicants who secured new bank loans Interest rates
1Q93 31% 7.42%
2Q93 37% 7.36%
3Q93 33% 7.34%
4Q93 36% 7.35%
1Q94 35% 7.34%
2Q94 34% 8.36%

Source: "Trendsetter Barometer," Coopers & Lybrand, New York City, September 1994.

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