Hi
Have a look at the latest article in Smart Company about what SME’s are thinking about the coming 12 months. It’s not looking good.
I did a series of blogs about what you can do to make sure that your company comes through these tough times. The key is access to ready cash - make sure that you collect all your debtors on a timely basis and keep in good with your banker and/or talking to other bankers.
Having cash is going to make all the difference. Don’t ignore cash from credit cards. It’s certainly not the cheapest money but when it makes the difference between staying alive and failure then it’s not a bad option.
Here’s an interesting story…
I am following my own advice and I called the bank to confirm my credit card details. Low and behold, WITHOUT my asking, they offered to reduce my interest rate by 7.25%. And that’s on a standard card. They probably thought that I was going to cancel the card. The only catch, I had to forgo ‘free’ travel insurance and frequent flyer points. That’s a pretty good offer.
Now, I am a good customer and I make sure that all is in order with my cards. After all, these cards are my access to emergency cash.
And it gets better…
I have had 2 offers this week to transfer balances to other providers at rates as little as 10.99%. It getting very competitive!
My advice…
- renegotiate your credit limits upwards. But be very disciplined and only use in case of an emergency
- renegotiate all your interest rates. It will take time (you’ll be on hold forever) but at reductions between 7% and 10% it’s worth the wait.
Do it now. If you wait until you need to money you probably won’t get it. Everything is getting tight. You can’t afford to wait.
Banks are starting to be more flexible, take advantage of this opportunity.
Cheers
Have a read
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