Weathering the Storm: Banks Continue to Tighten Amid Losses
Unless you live under a rock, you have probably
noticed that there is a banking crisis. Banks are
continuing to struggle with multibillion-dollar
losses in real estate and are continuing to
tighten-up on all forms of credit. In a recent New
York Times article (‘Worried Banks Sharply Reduce
Business Loans’), the Federal Reserve reported
that new commercial loans have seen the largest
drop since 2001.
This classic "credit crunch" is leaving many
businesses with the feeling that
they are without a mechanism for growth. What’s
more, this could leave already cash strapped
businesses out in the cold.
Financial planning in today’s economic climate is
the key to ensure your cash flow
is healthy. Problems can be avoided with proper
planning with your accountant or CPA and
implementing an immediate review of internal
costs. What savings can be made? Do staff numbers
need to be cut? Moreover, run credit checks on
customers or clients who may be a bad risk and
review whether it’s worth keeping them.
Fore many businesses, the factoring of accounts
receivable can be a healthy way to “weather the
storm” without incurring debt. The process is
simple and straight forward; and in many cases,
less expensive than a traditional bank loan.
Click here to
find out more about Invoice Factoring
If you run out of cash before you run out of month
you're in trouble; do it month after month and
you're out of business. Remember: Cash is king.
The management of it is the secret to success.
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