Rants and Podcast
Unique Insights from Business and Industry Leaders. We provide unique content that covers the most relevant industry topics.
Mar 19, 2021 | Podcast
What Lies Ahead for Small Businesses?
The aerospace industry went through a ton of large-scale events last year, from the grounding of the 737 to the decreased demand for widebodies and travel bans. However, while many of us have thought about how this affects the big players, not enough of us are talking about the little guys.
How has the lower middle market fared, and what does 2021 have in store for them?
Will there be an opportunity to bounce back, or are they in grave danger?
As more potential travelers get vaccinated, is there hope on the horizon?
In this episode, Managing Director of Patriot Industrial Partners, Alex Krutz shares his outlook on the lower middle market.
Three Things You’ll Learn In This Episode
- The unique challenge faced by small businesses: Thanks to having fewer assets, smaller companies are typically less likely to receive loans than their larger counterparts. Banks and lenders are more risk-averse with small businesses, and that puts them at great risk.
- What lower production volumes mean for lower middle-market companies: In the past, when volumes were higher, bigger businesses would source parts from multiple suppliers to curb risks. Now that the demand is low, having more than one supplier is a cost many aren’t willing to incur.
- The next step for small companies: Small businesses might not be able to get traditional loans from banks, but that doesn’t mean it’s the end of the road. Now is the time to get creative with other lenders and investors.