Lender Financing: It’s a Balancing Act

While People's Capital doesn't provide lines of credit, Davies has witnessed the downfall of many borrowers due to tightening or elimination of the lines. "Unfortunately, at a time when the printer's receivables are likely being stretched, the lender is protecting itself by limiting what it considers eligible accounts," he says. "Companies have also been faced with liquidity limitations as suppliers are cutting back on traditional payment terms."