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jour_trader

05/20/10 11:10 PM

#18961 RE: outnabout #18958

Companies are finding more and more that they cannot rely on banks/loans for financing. Banks are only willing to loan you money when you don't need it (risk averse). In this case they see a better financing opportunity than one previously presented and are forward thinking. They're counting on a challenging future ahead and are collecting cash now versus the risk of not collecting as much or with as favorable rates in the future.