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 and 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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