ARA Urges Members to Write Congress on Credit Crisis
October 1, 2008 • As U.S. Senators line up to vote on the bank bailout bill today following its defeat on Monday in the U.S. House of Representatives, the American Rental Association urges those in the equipment rental industry to take an interest in what happens in Washington as the credit crisis is debated.
Congressional inaction on the U.S. credit crisis is not limited to large lending institutions but quickly proliferates to local banks and then on to the individuals, the association said in an email to its members. “This crisis can place your business, regardless of size, in jeopardy,” the report reads. “If you finance your daily business operations or purchase your equipment inventory with a line of credit, you may experience difficulty accessing that credit in the near future as credit markets tighten. On the income side, your customers will experience the same difficulty in securing credit to make payments to you. If this happens, your business could be hit with a credit ‘double whammy.'”
The ARA says that without timely action in the U.S. House of Representatives and the U.S. Senate, the credit markets will continue to erode, increasing the tenuous situation for the rental industry. It urges members to send a message to Congress on the need for credit availability within your business. Find Congress members from your district here. Below is a sample letter the ARA has provided as a guide for members to send to Congress.
Dear Senator/Representative:
I am writing as one of more than 5,000 rental and supplier business members of the American Rental Association. We rent equipment to the public and businesses on a short-term basis. Our business must buy and maintain a large inventory of equipment to meet the demands of our customers. Rental businesses use credit to purchase and maintain their rental inventory and for day-to-day operations. Our customers also use credit to pay for their rental transactions. Simply put, credit is the lifeblood of the $36.5 billion rental industry. We cannot exist without a functioning credit market. Congress needs to restore confidence in the market.
As a taxpayer, I admit I have unanswered questions about the bill (The Economic Recovery and Stabilization Act of 2008) that has been moving through Congress in recent days. However, I have more concern that Congressional inaction will result in a severe erosion or total collapse in our credit markets that could cause our economy irreparable damage. To me, the cost of inaction far outweighs the cost of action. I respectfully ask that you vote in favor of this bill when it comes before you for consideration.
Sincerely,
Name
