Small business owners feel the credit crunch

, which means they need to retain capital. And banks are being more cautious in general due to uncertainty about the economy.

“It’s just not the right timing now as lenders appear unclear about the broader credit markets and seem to be clutching the purse strings tightly at this point,” Foreman said. “We just have to ride this out until conditions are right to arrange the proper financing for our acquisition.” A credit crunch affects small businesses more than larger ones, he said, because smaller businesses have fewer levers they can pull to get financing.

Barber said that her business -- which generates annual revenue of 2.5 million pounds -- is essentially self-funded but when she recently turned to PayPal for extra funding, the financial terms were stricter compared to a year ago. Barber wanted to borrow 150,000 pounds but learned that she would get charged 10,000 pounds upfront, instead of the usual 6,000 pounds and that she needed to pay within six months, instead of nine months.

Just know it was an all women investment board that brought this bank to its knees.

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