Issue link: http://read.dmtmag.com/i/81015
MANAGEMENT Photo: Thinkstock/Digital Vision Business Loan in Good Times and Bad How to Get a By Adam Beak Start with a sound business plan and good leadership he slowdown in lending brought on by the 2008- 09 recession seems to be behind us. The U.S. economy is growing, businesses are growing and lenders are looking to extend credit and help finance growth. While this is all good news for the wine industry, potential borrowers should be aware that the funda- mentals of sound lending have not changed. There are still a handful 64 VINEYARD & WINERY MANAGEMENT SEPT - OCT 2012 of essential factors a potential bor- rower in the wine industry needs to keep in mind – in tough times and in the good times. THE BORROWING CLIMATE The recent recession led to a dra- matic downturn in lending for many sectors of the economy, including the wine industry. The weakness in consumer spending contributed to slower business growth and there- fore, less need among businesses for credit. At the same time, on the supply side of the credit equation, some lenders – particularly those focused on the ultra-premium por- tion of the wine market – pulled back on lending and concentrated on working through troubled loans in their portfolios. The tighter credit affected nearly everyone in the wine industry, whether they were WWW.VWM-ONLINE.COM