Tag Archive for 'cash flow'

Talk hard with your bank

Published
by
Gail Geronimos
on October 21, 2008
in General
. 0 Comments

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

What’s Going to Happen Now!

Published
by
Gail Geronimos
on September 30, 2008
in General
. 0 Comments

Hi everyone

Earlier it was announced that Congress had rejected the Wall St Bailout. And sharemarkets around the world crashed. The Nasdaq was down just over 9% in a few hours.

What does it all mean for us?

First, money will be very tight so make sure you have access to enough cash to see you through in the next 12 months. Have a few options up your sleeve just in case your banker gets a little nervous and decides to no longer provide you with the funding you need. Talk to other banks and have a store of ready cash handy.

It will get worse before it gets better so don’t even think about riding out the storm. It will be a long wait and you just might drown.

Think twice about any major expenditure right now. Access to cash is going to be critical. The banks will certainly be getting very careful about the loans they make in the coming months.

I agree with many commentators who suggest that the system in Australia is better controlled but it will not save us from the economic fallout. It will probably be less than what the Americans experience but it will be felt.

China is still predicting about 8% growth and that will certainly help our economy. But I wonder about the state of their banking system. It is relatively new and was established in the boom times. Do they have the rigorous regulation in place to ensure the soundness of their banking system? I’ve not read much about that and there is a little warning bell in the back of my mind. Then again, perhaps I’m too cynical.

For now, batten down the hatches, don’t be too adventurous and take your bank manager out to a very nice lunch.

Cheers