Despite previous rhetoric it is now apparent that some banks are still
trying to increase their reserves, rather than lend more money out.
New figures from the banks themselves confirm that lending to businesses
is continuing to fall. Meantime non-bank lending to small businesses has hit a
five-year high, as more enterprises turn to alternative sources of credit such
as peer-to-peer lenders and invoice financing.
As the Banks continue to
labour under the weight of their previous errors the knock on effects are
percolating down through the economy.
With both new and additional funding hard to access – 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 precipitated the
ongoing crisis but that will not prevent them from playing hard ball with
anyone trying to seek support for additional funding in the current climate.
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