Hitachi Capital

The sums involved in these loans are fairly large, usually in the hundreds of thousands of dollars. As lending elevated, more individuals defaulted on loans and filed for bankruptcy, which made banks reluctant to proceed lending cash, especially to small companies that have been unlikely to stay in business. This created a big pool of mortgage candidates for finance corporations. For example, in 1996, 37 percent of the small-enterprise house owners in America requested loans from banks, and 25 % of these have been rejected.

Commercial finance firms grew steadily all through the Nineteen Nineties, and by the top of the Nineteen Nineties they have been the second largest provider of enterprise credit in the United States. During the Nineteen Nineties the Money Store and AT&T Small Business Lending had emerged as the 2 largest finance firms within the United States. In 1997 the Money Store provided 1,784 loans to …