Archive for June 2002
Manufacturers, Other Nonbanks Fund Ever More Business, With Little Supervision — GE Capital Rescues a Printer
By Greg Ip
10 June 2002
The Wall Street Journal
(Copyright (c) 2002, Dow Jones & Company, Inc.)
Last year started badly for Peake Printers Inc. Several firms whose annual reports it had expected to produce perished. Things got worse when Bank of America said the Cheverly, Md., commercial printer would have to repay a $3.2 million loan by year end.
Two other banks declined to lend. “They were trying to back off on printing businesses,” says Joseph Moran, Peake’s chief financial officer.
With the 125-employee firm’s survival at stake, Mr. Moran finally found an eager lender: General Electric Capital. Though Peake had to put up printing equipment, a building, accounts receivable and $1 million of the owners’ cash as collateral, it got the loan it needed.
The financial-services arm of General Electric Co. illustrates how nontraditional lenders are taking over from banks as suppliers of credit to big slices of the U.S. economy. Read the rest of this entry »