Rate Hikes Don't Stall Loans, But...
A Coopers & Lybrand survey of 424 fast-growing companies found that 35% of them had secured bank loans during the previous quarter despite the Federal Reserve's rate increases last year. George Auxier, national director of Coopers & Lybrand's Entrepreneurial Advisory Services, warned that rates of 10% could "dampen" enthusiasm for bank loans. Still, those who did get new funding were the more sanguine about their prospects for 1995.
What percentage revenue growth do you project during the next 12 months?
Companies that have secured new bank loans 34.9%
Companies without new bank loans 24.6%
Source: "Trendsetter Barometer," Coopers & Lybrand, New York City, December 1994.* * *