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- DictionaryCred·it crunch/ˈkredit ˌkrənCH/
noun
- 1. a sudden sharp reduction in the availability of money or credit from banks and other lenders: "the beleaguered company has become the latest victim of the credit crunch"
Jun 27, 2023 · June 27, 2023. Credit crunch definition. A credit crunch happens when banks become hesitant to lend money, leading to higher interest rates and rising borrowing costs. Credit crunches can be challenging for small business owners.
Apr 7, 2024 · A credit crunch refers to a sudden reduction in the general availability of loans or credit or a sudden tightening of the conditions required to obtain a loan from banks. It can occur due to various reasons, including heightened fears of risk among lenders, an economic downturn, or direct financial or regulatory action intended to reduce the ...
Jun 1, 2023 · Simply put, a credit crunch is a time during which it is more difficult than usual to obtain a loan. The credit environment has tightened, which means that, for...
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Oct 1, 2019 · InvestingAnswers Expert. Updated October 1, 2019. What is a Credit Crunch? A credit crunch occurs when loans are very expensive and difficult to obtain. How Does a Credit Crunch Work? During a credit crunch, lending institutions are limited as to the amount of funds they can use to make loans.
/ˈkredɪt krʌntʃ/ [usually singular] (economics) an economic condition in which it suddenly becomes difficult and expensive to borrow money. In a credit crunch, lenders stop lending and credit becomes tough to obtain. Consumer confidence is plunging as the credit crunch hits household budgets.
Definitions of credit crunch. noun. a state in which there is a short supply of cash to lend to businesses and consumers and interest rates are high. synonyms: liquidity crisis, squeeze. see more.
Jul 26, 2023 · Explore Alternative Financing Options. What Is a Credit Crunch? A credit crunch occurs when there is a sudden and severe reduction in credit availability, making it challenging for businesses to secure financing. It’s more than just a financial buzzword — it’s a phenomenon that can have far-reaching consequences for businesses.
