Small Businesses Look to Installment Loans Despite Bank "Revival"

Small businesses still looking for aid

Small businesses are still looking to installment loans to carry them through until the rocky economy stabilizes. The U.S. market has made it difficult for small business owners to find funding. Many are closing their doors, as they feel the crunch of the recession. However, there are a greater number of hopeful business owners who are looking for ways to wait the economy's downturn out, and once again flourish as a result.

Bank of America

Bank of America saw a profit in Q1, which is the good news, although their stocks fell 17%, which is the bad news. Analysts say the profit created was a benefit of unusually strong bond trading, however this is not expected to last, and cannot be relied upon, as the loan industry reorganizes.

Some banks are seeing a profit, but that can no longer be interpreted from a solely "good/bad" perspective. Because of the economy, there are many other factors when assessing the banking climate. One analyst, Bart Narter stated, "Bank of America is no longer exclusively a retail bank and there can be more fluctuations."

Looking deeper into the finances of Bank of America shows a more accurate picture. They did increase revenues, however troubled loans and under-performing assets increased from $7.8 billion last year, to $25.7 billion this year. They also lost another $1.8 billion on card services. CEO Ken Lewis stated, "Credit is bad and we believe [it] is going to get worse before it will eventually stabilize and improve…whether that turn is later this year or in the first half of 2010, I'm not going to hazard a guess." ... click here to read the rest of the article titled "Small Businesses Look to Installment Loans Despite Bank "Revival""