Lack Of Credit Is A Big Obstacle For Furniture Industry

Posted by MCC on July 6th, 2009 at 10:21pm

There just isn’t as much credit available as there was a few years ago. And, when credit is available, it’s much harder to obtain now. This has became a serious problem for the furniture industry. Anyone that doesn’t really need credit can get it without any problems, but those that do need it, can’t seem to get approved.

A series of drastic changes by credit card providers over the past year has greatly reduced the amount of credit available in the industry. Some providers such as American General, have even eliminated consumer financing available through furniture stores.

With tighter credit terms and a strong desire to eliminate, or reduce credit risks, credit providers are no longer user friendly. And, more and more retailers are finding it much harder to pay their suppliers. The furniture industry is now seeking other alternatives for financing purchases.

The credit approval crunch is of course, hurting smaller businesses and making it harder for them to keep inventory on hand. Many furniture retailers have already been cutting back on inventory for some time and more are sure to follow.

Under Furniture News