As a huge college football fan, I always look forward to the BCS Championship game. Prior to the game, I am always intrigued by the various opinions & predictions about who will win, which offensive scheme will prevail, how the defenses will unveil new blitz packages, etc. There is never a shortage of vastly different, yet plausible, opinions as to the potential outcome of the game.
This is very similar to the discussion of a potential recession in 2020. I recently came across two very well written articles; both published within a couple days of each other (one from the NY Post and one from MarketWatch). These authors are certainly better positioned to comment than I am on macroeconomic conditions. What I found most interesting is that the articles represent two very different viewpoints.
Here are links to each article:
Everything is going to be fine
Just like the sports pundits, these journalists have access to mountains of data from which to draw conclusions and support their positions. After reading both articles, I found that they are equally plausible. So, which viewpoint do you believe? BOTH!
As a CFO, it is critical that your company is financially prepared to weather the conditions – regardless of which way the economic winds blow. Making sure your company has access to necessary working capital is critical for survival. Now is a good time to review your current bank facility to assure your company’s working capital availability is sufficient for all potential scenarios. If the economy leans toward recession, this will most certainly result in a tightening of credit and an increase in rates.
Having a secondary source of liquidity may be the right move with the pending uncertainty. Tradecycle’s unique model works in tandem with traditional lines of credit without disrupting your incumbent bank relationships. We provide funding where company’s need it most – in their supply chain.
Click HERE for a brief video that showcases our solution and technology. If you would like to learn more, please feel free to reach me directly via email.
Justin Goheen
President & Founder
Tradecycle Capital LLC
jgoheen@tradecyclecapital.com