How do we improve cash/financing during this slow recovery? By managing our company’s credit better! Use Tatum LLC’s ideas: get to know your lender’s needs and positions, and respond accordingly to them. Identify in advance what to do when/if your lender cuts your credit line by 20% or more; most have already done that without telling you. Or, they’ve toughened up your lending trigger points. Next, forecast 16-weeks out on cash flow, for internal use, and then give that forecast a “haricut” with safety valves before sharing with lenders. Trade price for payment with customers and suppliers to improve your cash flow. Finally, get new, auxiliary lines from private sources (angels and private placements), SBA lenders (who are now supported by the otherwise-errant stimulus funding), local and community banks and credit unions.
Regardless of the particular lender, manage your credit better with the timeless Tatum article on lending and credit: click on the following address http://www.ceotools.com/blog/2009/01/recession-ideas-from-tatum-llc/ and then print out the free PDF by clicking on “Managing Bank Relationships…”
You’ll be glad you checked it out! With best regards, Kraig