06 Sep THE UNPREDICTABLE BUSINESS CYCLE
One moment the economy is like a “bull market”, the next moment, a “bear market”. These terms used would be familiar to those dabble in stock market. But I am not talking about investing in shares. I am just using the terms to describe the current business market, generally.
With the unpredictable business cycle, businesses have to consider their finances for survival during the tough tides or gearing up for expansion.
How you plan your business operation can affect areas such as budget for hiring new staff, purchasing and making payment of goods, and other operating expenses. No matter how well your business is doing, you can’t predict the sudden change of the economic cycle and the severity of it.
Businesses have to create financial plans for unforeseen situations. Smart companies set aside cash savings, good credit smart investments etc. to help the business maintain the momentum even when the business climate is not in their favour.
I came across this proverb, “It takes money to make money.”
The Government has launched the SME Working Capital Loan as a measure for business. Under this scheme, the Government will co-share 50% of the default risk of these loans with participating financial institutions, to encourage lending to SMEs.
I will urge you to look into your business finance if you have not. We will be glad to assist you. Contact us – we are just a phonecall or email away.