Daily News: October 11, 2012

Basel III Could Provide Alternative Financing Opportunities

CFO reported that the situation for businesses applying for credit could get worse in the next few years because pieces of the new Basel III bank capital rules may force banks to be more selective with their capital commitments, especially to companies of marginal creditworthiness.

The article noted that companies that are neither A nor B credits – such as firms that are cash-flow negative, startups with intellectual property but no customers and young industrial companies that need to finance fixed assets before entering production phase – are seeking
alternative financing sources more willing to deploy money and finance higher-risk projects.

To read the full CFO article, click here.