Credit Crunch Commonsense
Posted on 19. Mar, 2009 by Adam Weight in Business & Economy
I was reading the March 2009 issue of Your Business: Commonsense Guide to Success (a magazine delivered by Dex) a few days ago, and one brief article titled “Coping with the credit crunch” jumped out at me that I think is worth sharing. I couldn’t find an online version of the article, so I’m quoting the piece here almost in its entirety. If I can find the article online I will provide a link as soon as possible with a post edit:
“The squeeze on business loans has continued in recent months [and] some reports say U.S. Small Business Administration loans have declined substantially. Now what? The National Federation of Independent Business (nfib.com) offers seven tips from its chief economist, William Dunkelburg, to keep capital flowing during a credit crisis.
1. Don’t panic. Find out if you’re facing a change in your bank’s willingness to extend credit.
2. Branch out. If you bank with a mega-bank, start making friends with local community banks.
3. Educate yourself. Find out if your bank loans are affected. Check the FDIC deposit-summary site: www2.fdic.gov/sod/
4. Keep in touch with your banker. Update information related to loans.
5. Manage your cash well. Don’t invest or make unessential capital expenditures.
6. Check your credit report for accuracy with the major credit bureaus.
7. Manage your account receivables, especially if they’re collateral for a loan. Make sure your lender knows that they are good assets.”
It’s brief, but excellent advice. We’re seeing that increased, open, and honest communication between our business customers and the bank goes a long way toward fostering more trust and a willingness to cooperate. You may find that the relationship you have with your bank is one of the bright spots in an otherwise dimmed marketplace.
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