Where does your company sit on the risk volatility barometer? In short…does your business nominally change when the market does or, inversely, is your Sales significantly affected with changes in your market.
The answer may not matter when your cash flow is poised to be negative in the foreseeable future so alternate debt/equity financing is necessary now.
If however, your company, for instance, moves with the market and you see a material market move upwards in the next several quarters…you ought to be seeking financing now also, but for different reasons. First to market always takes the prize – elevated margins. Two, optimum rates/terms/conditions etc. are extended to the healthiest balance sheets…that’s the time to retain credit.
Company’s typically don’t request financing unless they have a need; either pro or reactive. If you are pro to market growth, your lending opportunity is inherently tied to both your assets and your forecast. If you are reactive, it’s time to get to work now and head it off when lenders regard your financials as opposed to borrowers who are either ‘at or underwater’ – too late and no appetite.
Small business owners/managers need to focus on the business, while a trusted and experienced financing advisor looks after your funding needs. Seek a debt financing specialist while you’re still in control and retain your margins while the cycles play themselves out – you will be positioned for the changes accordingly.
Inevitably, all sectors are hilly; that cannot change however, being positioned per your short/mid term forecast can give you more control over your competition then themselves. During downturns, liquidity allows for takeovers thus increasing your market share via undervalued assets – be poised for that takeover, regardless of whether you were planning for it…the competition often looks for ‘saviors / bailouts’ when they mis-read and fail to prepare for change.
Beta Factor : 1. Now you’re in control
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