 As
we close in on the mid-term elections, we are confronted with a
barrage of sound bites and data overload concerning the economy,
legislation and general political posturing. To say that the average
American and, more specifically, the small to medium-size business
owner is confused and concerned would be a gross understatement.
They have been mentally whipsawed for the past two years and there
appears no discernable end in sight.
Recently, in
a public forum, a woman asked President Obama if the current
economic environment was her “new reality.” Others
have echoed the same sentiment. With an anticipated protracted
period of high unemployment, continued tightness as to credit availability,
the dubious impact of legislation and the general lack of consumer
confidence, one could make the case that we are facing a long-term,
if not permanent, paradigm shift. Some considerations could include:
- Modification of business plans
- Suppliers demanding more astringent payment terms
- Customers extending invoice payment (Net 60 is the new Net
30)
- Tighter credit underwriting guidelines
- Constrained business growth
- More demands
for “Just In Time” delivery
- More business closures/mergers
- More common utilization of alternative financing strategies
(factoring, purchase order financing, etc.)
With the results
of the midterm elections unknown at this time, it’s not
clear as to what impact they will have in addressing these and
other issues. To be sure, it will be a challenging scenario that
will take time no matter the party in power.
While alternative financing has a meaningful impact on the clients
we serve, addressing the full spectrum of issues from high growth
to business survival, the current environment has created a financial
mandate to incorporate these strategies as part of a balanced and
versatile financing plan.
As business
owners contemplate how they might best address their “new
reality,” I would appreciate the opportunity to detail our
services and how they may play a vital role in successfully navigating
these uncharted waters.
Tom Stamborski
(847) 842.3300
tstamborski@liquidcapitalcorp.com
P.S. If you missed my previous e-bulletins, click here to view them. |
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