Choose an area of interest:
Search 

Choose an area of interest:


CFOs Find Credit Tougher to Come By, with Increasing Costs


Oct. 13, 2008 (SmartPros) In a national survey of CFOs and senior comptrollers conducted by Grant Thornton LLP, more than half say they have seen credit costs increase. Almost two-thirds of respondents have found credit more difficult to come by than one year ago, but only 14 percent have had to return to bank credit because they couldn't access alternative financing structures.



With regard to the overall economy,  47 percent think the condition of the U.S. economy will stay the same over the next six months. Four in ten respondents think their own company’s financial prospects will improve by March, and 17 percent expect them to get worse.

Over the next six months, 42 percent of respondents expect their company to increase prices, while 51 percent expect no change. The senior executives ranked employee benefits as their number one pricing pressure concern (55%), with energy pricing pressures selected as a close second (40%).

Have you seen credit costs increase?

Yes

55%

No

45%

 

Is credit more difficult to come by now than one year ago?

Yes

64%

No

36%

 

Have you had to return to bank credit because you no longer can access alternative financing structures?

Yes

14%

No

86%

Over the next six months, do you expect the U.S. economy to:

Improve

22%

Remain the same

47%

Get worse

31%

 

Over the next six months, do you expect your company's financial prospects to:

Improve

40%

Remain the same

43%

Get worse

17%

Over the next six months, do you expect prices or fees charged by your company to:

Improve

42%

Remain the same

51%

Get worse

7%

About which type(s) of pricing pressure are you most concerned? (Respondents could select more than one option.)

Employee benefits (e.g., health care, pensions)

55%

Energy

40%

Raw materials (e.g., food, metals)

39%

Insurance

17%

Other

12%

Commercial property

5%

Over the next six months, do you expect your headcount to:

Increase

30%

Remain the same

47%

Decrease

23%

2008 SmartPros. All Rights Reserved.

Related Stories
 
 
This Week in the SmartPros News & Insights Newsletter

Senior Execs Pass on High Energy Costs to Customers

Nearly Half of Retail CFOs Report a Tightening of Credit

  Related Courses
 


 
Would you recommend this article?
5 (yes, highly)
4
3
2
1 (no, not at all)
Comments:


 
 
About SmartPros | Accounting Products | Professional Education | Marketing Services | Consulting | Engineering Products | Contact Us
2009 SmartPros Ltd.