After a
substantial rally in the Global stock markets we have recently seen some
turbulent trading and wild price swings.
Whilst some commentators remain bullish the recent spate of economic news
from China, the Eurozone have clearly unsettled some operators.
Now is the time to remain focussed and consider the implications for your
business.
Just as was evidenced during the credit crunch crisis in the summer of
2008 there is a question mark over the manner in which the Banks will respond
to the current inputs.
The problem for the Banks is that because of the legacies of their
previous mistakes they are effectively stifling their customers businesses as
they look to batten down the hatches and strengthen their own balance sheets.
It will remain difficult to gain support from the Banks in the coming
months therefore it must be the absolute priority to keep a strict rein on your
finances – make sure that your Debtors Book is strictly controlled and ensure
that Stock turn and inventory levels are well policed.
With their houses still far from in order, the Banks will undoubtedly remain conservative in their approach to lending, so the order of the day
is work within your current limits and maximise your profits.
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