What exactly do they term as Main St.l have been actively involved in small business for over a decade and have never taken out a loan to cover operating expenses.l have used credit cards for purchases from companies that did not offer 30/net terms.But even so l still paid when statement came in.l have been involved in downtown merchant groups as well and have never heard of taken out loans to cover monthly operating expenses.Who are they really talking about?What really effects my sales are everyday things like the cost of gas.

Loans to meet payroll tend to be found in businesses like construction & manufacturing. In construction & custom manufacturing most of the money for the products is not paid until late in the cycle. In the case of standardized manufacturing none of the money is paid in until product is shipped.

In retailing l believe the biggest use of loans is to finance inventory carrying costs. The classic example is new car dealers, the vast majority of whom r financing their inventories.

l think the politicians prefer to talk about ''loans to meet payroll'' because most of the voters r employees & they get emotional at the thought of their friends & neighbors not being paid for work performed because the evil bankers wouldn't/could not make loans to meet payroll.

Jerry-the-bookkeeper