Helping Your Business Avoid a Financial Crisis

PMF Bancorp Financial Tip of the Month: July 2011

Industrial & Commercial Lending Down
Industrial & Commercial Lending Down

The goal of PMF Bancorp is to be an effective resource for our clients. Whether providing access to invoice factoring, lines of credit or trade financing, PMF Bancorp is a one-stop shop of excellent services and precise analysis. By delivering the information you need, we know from experience that we can help your business manage capital and increase profits. As part of our program, PMF Bancorp offers this ongoing series of monthly financial tips to help your company thrive in a challenging economic climate.

Right off the bat, here is the most important financial tip, an essential point for all companies wishing to avoid a credit crisis. Anticipate cash flow problems and set up additional lines of credit before problems arise. When you act in crisis, you often make desperate choices that you later regret. When you act from a position of strength, you maintain and build the quality of your business.

Your company should setup business lines of credit when you least need them so they are in place when challenges arise. Since most business owners and C-level management are focused on marketing and selling their products, they often get caught off guard when working capital suddenly is in short supply. You scramble for a loan, forced into high interest rates and difficult payment options that are bad for your business. With a little planning, such shortfalls not only can be avoided, but also can be effectively addressed long before they become a problem. The financial services staff at PMF Bancorp are experts at turning this positive outcome into a working reality.

As an entrepreneur, you are naturally optimistic or you wouldn’t be in business. You are determined to increase sales and know the question is “when” and never “if”. With this perspective, locating a financial source when things are going well will help you prepare for future growth and potential challenges. Without question the best way to conduct business is to anticipate problems before they happen.

Please click here for more information on lines of credit and to see whether your company qualifies, we can help your company today.

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