I was only referring to the practice by banks of freezing credit lines for small companies. This WILL create a snowball effect forcing companies to close their doors. We have to figure out a way to inject confidence in the credit system...
In all fairness, they should have seen this coming and they should have had more cash on hand. Many businesses anticipated the downturn and started building cash reserves a year or two ago.
That may be true for existing business but that is a pretty harsh sentiment to apply to a business just starting out. It's pretty hard to save when you are just starting to grow revenues or when you are even earlier in your business cycle.
A world without short term credit looks a lot like the third world. I prefer living here (at least I used to).