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When the economy falters, credit managers face trying times--and there's no doubt that this is one of them.
After years of cheap and readily available funding, businesses are finding credit harder to come by. For example, U.S. structured financing--the financing behind financing--went from more than $300 billion per month in June 2007 to less than $50 billion per month in November 2007. Rising prices have put upward pressure on the cost of doing business. Consumers are tightening their belts in the face of a rising cost of living, a decline in home values and fears of a sharp economic slide being stoked by the press.
For the moment, one downturn seems to ...