Following the recent
dramatic falls in Global markets, fear is the overriding factor with an
increasing sense of nervousness for many operators.
Politicians seem to be hell bent on outdoing each other as to who can
send out the direst warnings.
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. Five of Britain's top lenders need
to plug a combined 27 billion pound ($42.3 billion) capital hole as part of an assessment by the country's new financial watchdog,
which is trying to restore confidence in the sector.
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 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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