Ken Preston, spokesperson for the Bank of America, said his company “has made a strategic decision to limit credit exposure to commercial contractors.
“In light of events of September 11, we are now being more selective in choosing to give credit to commercial contractors.”
But Preston said that published reports in The Orange County Register did not paint an accurate picture of Bank of America’s position.
“We are not exiting the commercial credit program,” he added. “We are now being more selective.”
Preston said that his company is taking a closer look at the bottom tier of customers — those companies that are likely to become “write-offs” in wake of the current economic climate.
“Initially we were not seeing a tightening of credit [after Sept. 11], but now many lenders are becoming more selective,” Preston said. “Besides, our portfolio of commercial contractors has shrunk due to write-offs.”