I went to an interesting presentation yesterday with a panel of economic professors. There are some well known speakers that we hear from at many of the banker lunches, but yesterday I listened to the first honest one. He painted the real picture of just how difficult 09 will be, as well as the first 2 quarters in 2010.
In the great depression of 1930-40's factoring invoices was a method that business owners needed to use when their sales had plummeted, and profits suffered. They say history repeats itself, and in fact it does. The bank credit correction that is taking place will force business owners out of business, if they don't know what other options are available. With no formal training in school, it will be up to the business professionals to keep an eye out for those owners who are suffering from negative cash flow. Attorney's, CPA's, Bookeepers, Payroll Service providers, need to be proactive with understanding what the client needs before it's too late. I would encourage people to speak with all their clients on how their banking relationships are going, since there are a lot of sudden changes taking place right now.
Credit lines may not be renewed, banks in a crisis have frozen credit lines with the customers, letters have been going out letting people know their loans are due... Keep a sharp eye out, and a helping hand.
Go to my website and check it out http://www.alliancecomcredit.com/
Suzy
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