Don’t freak out!
It’s not time to start pulling all your money out of the bank and hiding it in your mattress or digging a hole in the backyard and burying your cash.
With all of the hype surrounding the recent bank failings in CA, many have started to be more cautious and skeptical. But knee-jerk reactions are part of the problem and not the solution.
This is actually a symptom we see often in our industry: i.e. what you thought was going to work didn’t, so your plan b is to make a rash decision that costs too much and inhibits the growth you were anticipating. So what are your viable options?
Quite frankly, you are able to get the information you need to see how your current bank is performing with regard to deposits and withdrawal transactions to determine if your current resource is a safe one. Not all banks are at risk, there were plenty of indicators for the ones that failed that this was an imminent disaster on the horizon. It’s like watching a train wreck in slow motion.
Protecting your hard earned money should be a priority, and most banks we work with are doing their best to reassure their clients that they have your back. But with that, they are also very restrained from lending to their business clients, particularly their smaller business clients, so this will surely continue to open up the market for alternative lending sources. Businesses are able to grow but they obviously will need steady cash flow in order to perform at the highest level, no matter what your line of work is.
By all means do your research, ask questions and see what your current relationship will be able to provide to you with regard to growth and access to the funds you need to perform on upcoming awards.
If you are looking for advice concerning the future of your lending capabilities, we would be happy to discuss all of your options and share our connections with you so you can make the best decision for your business. No need for knee-jerk decision making or risky maneuvering. Better to be armed with quality information than allowing your emotions to take the lead. Your homework is to ask questions, seek information from your banker on who they recommend in the event they cannot help you, ask them for references of other GovCons they assist, and be sure you take stock in actually reaching out. There is no better place to learn than from those who actually walk the walk you do every day!