"We're just fine" with zero debt on the operation, says the firm's president, who requests anonymity for competitive reasons. Borrow money for more $120,000 machining stations? That doesn't make a whole lot of sense, when the Chinese are knocking off his products and half his 25 existing stations are idle.The story is headlined "Are Banks Really Refusing to Lend?" It makes the case that banks aren't relucant to lend -- companies are hesitant to borrow. Firms like the unnamed toolmaker have cut costs, and now they're preserving cash and self-financing any necessary projects. I'm sure that's true at many companies. But is it really a trend that's spreading? Some firms avoid debt all the time, not just during economic downturns.
Toolmaker tells Forbes, 'Why expand?'
Forbes magazine posted a story today that quotes an unidentified mold maker saying he sees no need to invest in new equipment -- at least right now. Described as a longtime customer of Kalamazoo County State Bank in Schoolcraft, Mich., the president of the tooling firm told Forbes that his company has laid off 60 percent of its workers and refuses to touch a $1 million line of credit.
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