# Is small business obsolete? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [December 14, 2009, 6:05pm UTC](https://boards.straightdope.com/t/is-small-business-obsolete/521243 "2009-12-14T18:05:29Z")\ **Posts on this page:** 6\ **Page:** 3
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [December 16, 2009, 8:53pm UTC](https://boards.straightdope.com/t/is-small-business-obsolete/521243/41 "2009-12-16T20:53:29Z")
> [@msmith537](#): > > Yes, companies sit around thinking of excuses to get rid of people.:rolleyes: > > Anyhow, it doesn’t sound to stable if your business can’t make payroll month to month without a line of credit. Sit around? No, of course not. How silly. Put a positive on layoffs? Of course! Someone else will have to chime in about the credit thing. I’m only reporting what I’ve heard _many_ small business owners say. You sometimes have a funny way of trying to get your point accross, **msmith** 😛 ---
**Author:** ![Fuzzy\_Dunlop](https://avatars.discourse-cdn.com/v4/letter/f/848f3c/32.png) [@Fuzzy\_Dunlop](https://boards.straightdope.com/u/Fuzzy_Dunlop)\ **Post date:** [December 16, 2009, 8:54pm UTC](https://boards.straightdope.com/t/is-small-business-obsolete/521243/42 "2009-12-16T20:54:21Z")
> [@mangeorge](#): > > I’m not surprised, but I was under the impression that my Huge Corporation made payroll out of their own resources to avoid the cost of credit. Their payroll is so huge that any credit would be very expensive. I guess I could find out, but then they’d have to shoot me. Well I don’t know about _your_ huge corporation but there was well over a trillion dollars in outstanding commercial paper last year. At the worst point, in Oct. 2008 even very large corporations were unable to borrow money and the Federal Reserve had to step in and buy huge amounts of commercial paper to keep the market liquid. ---
**Author:** ![Fuzzy\_Dunlop](https://avatars.discourse-cdn.com/v4/letter/f/848f3c/32.png) [@Fuzzy\_Dunlop](https://boards.straightdope.com/u/Fuzzy_Dunlop)\ **Post date:** [December 16, 2009, 9:00pm UTC](https://boards.straightdope.com/t/is-small-business-obsolete/521243/43 "2009-12-16T21:00:33Z")
> [@mangeorge](#): > > Someone else will have to chime in about the credit thing. I’m only reporting what I’ve heard _many_ small business owners say. For what it’s worth, it’s more of a problem for small business owners than corporations. Earlier you made it sound like that tighter access to credit was only hurting small business when it’s been difficult for bigger companies and individuals also. But I didn’t mean to imply it’s equally odious. ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [December 16, 2009, 9:08pm UTC](https://boards.straightdope.com/t/is-small-business-obsolete/521243/44 "2009-12-16T21:08:25Z")
> [@Fuzzy\_Dunlop](#): > > Well I don’t know about _your_ huge corporation but there was well over a trillion dollars in outstanding commercial paper last year. At the worst point, in Oct. 2008 even very large corporations were unable to borrow money and the Federal Reserve had to step in and buy huge amounts of commercial paper to keep the market liquid. Commercial paper = debt! Now I know. I’d heard that my company’s payroll is in some kind intrest bearing account, but I don’t know about that kind of stuff. Do companies actually do that? ---
**Author:** ![Superfluous\_Parentheses](https://avatars.discourse-cdn.com/v4/letter/s/8edcca/32.png) [@Superfluous\_Parentheses](https://boards.straightdope.com/u/Superfluous_Parentheses)\ **Post date:** [December 16, 2009, 9:10pm UTC](https://boards.straightdope.com/t/is-small-business-obsolete/521243/45 "2009-12-16T21:10:13Z")
> [@mangeorge](#): > > I’m not surprised, but I was under the impression that my Huge Corporation made payroll out of their own resources to avoid the cost of credit. Their payroll is so huge that any credit would be very expensive. I guess I could find out, but then they’d have to shoot me. From what I understand (and this may be incorrect) the very huge companies - esp manufacturing etc - are the ones that rely on credit to pay the salaries, since they’ve pretty much always got better ways to stash their reserves - in new investments. ---
**Author:** ![Fuzzy\_Dunlop](https://avatars.discourse-cdn.com/v4/letter/f/848f3c/32.png) [@Fuzzy\_Dunlop](https://boards.straightdope.com/u/Fuzzy_Dunlop)\ **Post date:** [December 16, 2009, 9:22pm UTC](https://boards.straightdope.com/t/is-small-business-obsolete/521243/46 "2009-12-16T21:22:27Z")
> [@mangeorge](#): > > Commercial paper = debt! Now I know. > I’d heard that my company’s payroll is in some kind intrest bearing account, but I don’t know about that kind of stuff. Do companies actually do that? Commercial paper is an unsecured promissory note that matures in 1 to 270 days. So not secured with collateral and very short maturity. I’m sure your company’s treasurer or controller’s office puts significant time and effort into effectively managing its cash, which would certainly include putting some in money market accounts or other instruments when possible. [Previous page](https://boards.straightdope.com/t/is-small-business-obsolete/521243.md?page=2)