The effects of the credit crunch are now hitting tech financing. Tech companies such as Cisco and IBM are tightening credit requirements and having to write off bad loans. While the companies still have cash on hand, they are nevertheless tightening lending practices; and it’s anticipated that small businesses will be hurt the most. Tech financing has accounted for $88 Billion, or about 14 percent, of total computer hardware and software sales. An estimated 20 percent of IT managers say they are postponing purchases because of unfavorable credit terms. Add it all up and a sales slowdown is almost certain.