The economic slump we face now does not have to be permanent! As Obama talks about the “Doers” we must try to remember that the strength of our economy is tied to the labor or our nation and the innovations of our businesses. One thing we can’t ignore though is that globally there is a problem tied to the systems that balanced our economies and now we need to adjust a rebuild such systems in order to recover. The foundation for success does not need to change and has not disappeared, its simply a fine tuning of the management / structure that is required!
Businesses are folding and cutting back as investors and business finance companies are pulling their funds hoping to weather the bad times with their coins held tightly in their hands. This symptom of the lack of confidence in the economic system is as much to blame as any of the causes themselves. If we are to make it out of these times and begin to improve our economy we need to open the flood gates and give financing to companies - both start ups, but mainly working capital for existing businesses. Most small business and and larger companies depend on revolving credit for, business equipment, payroll and inventory. While banks cut financing, alternative options like merchant cash advances, a small business loan alternative based on credit card sales and less on credit score, become the only financing options available to owners. Other private investors looking to move away from mutual funds and other medium and high risk investments may also turn their capital over to business owners willing to pay interest as other traditional investing channels have averaged over 20% losses in recent months.
Basically - there is hope - but it will be based on the intentions, motivations and climate of investors, financing companies and other individuals that will look forward to a brighter future for confedence!