The newly appointed Head of the IMF has flagged up the need for a fresh injection of funds into European banks to ward off a repeat of the 2008 financial crisis.
We are already seeing a reduction of loans to companies in the face of tightening liquidity – now is the time to take a long hard look at your Company’s financial situation.
Any approach to your Bankers could be very uncomfortable in the current climate so it is necessary to demonstrate you have full control of your exposure. Make sure that the Debtors book makes for healthy reading and that inventory control and stock turn are being monitored very closely.
Ironically it is the activities of Banks themselves who have once again precipitated the inpending crisis but that will not prevent them from playing hard ball with anyone trying to seek support in the current climate.
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