How To Set Your Company Up For Success In A Possible Credit Crunch

Two professional women engaged in a discussion at a desk

As I interact with business owners on a daily basis, I’ve noticed there seems to be no consensus on just how severe of a recession we will see or what the impact will be. Thus far, the effects of a slowdown have varied greatly by industry. What these same business leaders are starting to see, however, is some changes in behavior by their lenders.

One customer was asked by their bank to provide guidance on the company’s strategy during the Great Recession. Multiple others have been asked in detail about their inventory strategy going forward. The increase in interest rates is an obvious impact on the business owner. What is not as clear is what is happening in the broader financial system, its impact on banks and what it could mean for your business.