Sudden changes can reduce a business' chances of getting financing

06/17/2013 |

Sudden changes in a company's revenue or workforce can reduce its chances of obtaining a loan, according to research from the University of New Hampshire's Paul College of Business and Economics. "Growth-oriented entrepreneurial firms are often more volatile than stable, moderate growth companies," said Mark Lange of the Institute for Exceptional Growth Cos., which helped to conduct the research. "If the debt-financing world can eventually establish new standards for these risk takers for evaluating creditworthiness, it could signal that we have truly entered an entrepreneurial economy."

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