“If you’re a smaller player, you need more capital to do business in tough times. They now need to show that they can keep churning profits in this environment”
David Hendler, CreditSights analyst, quoted in the Business News, South China Morning Post, 2 April 2008.
He might as well have been talking about SMEs. He was actually talking about Lehman Brothers having raised US$4Billion from a special offering of 4 million shares. The proceeds are slated to increase its capital base and provide greater financial flexibility.
Sounds familiar doesn’t it? Some of the best known names on Wall Street are scrambling to raise working capital and giving up equity to outside shareholders, despite the bravado.
Whilst this blog is not exclusively about Factoring, the pain on Wall Street is a nice contrast to Factoring, the potential benefits of which can be found by going to the Labels column on the Right Hand Side of this blog.
© 2008 Sanjeev Aaron Williams All Rights Reserved
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