Mish comments on finance for machine tools

Mish has posted on his blog an email from a friend who is complaining about not being able to finance machine tools:

An emerging trend this year is the sudden scarcity of capital from banks & machine tool finance companies. We planned to purchase two new machine tools this year. It now appears that we can obtain financing for just one, in spite of a spotless corporate credit record and continued sales growth. The lenders seem to be over-tightening because of the recent credit crisis. As I told my banker, “You guys seem frightened of your own shadows!”"

Mish rightly points out that the main problem is not (as the email author suggests) that the banks are "frightened" rather the problem is that the finance companies can't finance themselves.

Now I might be a little dopey - but this looks awful good for a company that (a) makes capital equipment and (b) can afford to finance it.

Did anyone say General Electric?