The Fall of a Real Estate Giant

The small business

The installment loan could be the answer to a small business' financial woes. In today's economy everyone is feeling the cash crunch. With unemployment rates at an all time high and the housing market crashing, businesses are hard-pressed to bring in customers. Whether or not funds come in, debt needs to be paid. An installment loan can help businesses by extending cash when it's needed. It is worth a look when the end of the month is looming and break-even points are nowhere to be seen. A simple application process and speedy review are both selling points of the installment loan. Sometimes it is the most viable option to save businesses from defaulting on payments.

The economy and a real estate giant

On April 16th, the second-largest U.S. mall owner, General Growth Properties Inc, filed bankruptcy, making this the largest real estate failure in economic history. The company is trying to refinance their debts, and more than 200 retail malls throughout the U.S. are involved in the mess. When a business conglomerate as large as General Growth Properties Inc. takes a fall, it affects a lot of other entities in the market, such as the employees, creditors and financial institutions.

Who is General Growth Properties Inc.?

General Growth Properties Inc. has been a staple in the American economy since 1954, when two brothers joined together to build a shopping center in Cedar Rapids, Iowa. From that time, they began buying buildings and malls and expanding their property empire in the retail market. During the real estate boom, the company aggressively bought properties with the intent of being the biggest retail corporation in the U.S. The acquisition of new properties created wealth, but also meant that the company was increasing their debt. Roll-over financing for businesses is common, but when lenders stopped extending funds last fall, General Growth was left without an option to pay its debts. Chief Executive Adam Metz stated, "We have worked tirelessly…to address our maturing debts, the collapse of the credit markets has made it imposs ible for us to refinance maturing debt outside of Chapter 11." ... click here to read the rest of the article titled "The Fall of a Real Estate Giant"