Following the weekend announcement from IMF Chief Christine Lagarde that although the global lender can meet its current obligations this could change if the crisis worsens are heightening concerns that more European Banks are in danger of failing the stress test.
This comes as a timely reminder that all businesses operating in today’s climate need to have constant and rigorous focus on their commercial exposure.
Against the current competitive background it is very difficult to contemplate turning away business especially from a customer of long standing. Many times however, the best business is that which is left to competitors.
It may well be that turnover suffers when stricter controls are in place over such elements as payment terms and credit limits.
However, the reward for such fiscal discipline is obvious. Avoiding defaults by customers not only protects the company’s bottom line but considerably reduces the stress in your own life!
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