Preparing for the Credit Crunch

The Startup Journal has a warning for small-business owners: the credit crunch currently plaguing consumers and big corporations is about to encroach on small business. Worried about the prospect of small businesses defaulting on loans, banks will begin to tighten their purse strings on small-business loans, which can wreak havoc for a small business in a cash crunch.

There are ways small businesses can prepare, the article says, including "picking a bank that caters to their situation, keeping detailed financial records and being prepared to put up personal assets like homes as collateral, can make a big difference for young companies seeking funding."