Thanksgiving gone by and we are fast heading into Christmas and in the great American tradition most of us over indulged ourselves during Thanksgiving dinner, even with the best intentions and we will probably do it again come Christmas. We ask ourselves, “Why did I do that?” Well, tradition, but mostly because it was there, almost begging to be consumed. 

We often find ourselves in a similar position with regard to our use of credit for our business. Except in the case of easily available credit, Mr. Grinch, meaning the bankers, have taken it all away. Even though the government has provided them with additional cash/credit and liquidity so they could make loans, they have refused to do so. 

We have been spending and spending thinking that credit was going to be cheap and easy forever and like there was no tomorrow.  If we ate everyday like we do during the holidays we would weight 400 pounds, have high blood pressure, high cholesterol and maybe a heart attack or two. We don’t because we know the outcome. 

Yet, in a way, the same thing applies to our company’s balance sheet. All too often we have taken the approach that seems like we think that we can borrow ourselves out of debt. And with the encouragement of easy credit and the willingness of the bankers, we piled it on, using credit capital when perhaps we should have been thinking of invested capital. It was just so easy and our banker really liked us. Then comes the crunch and our bankers are nowhere to be found, speaking metaphorically. Really we know where they are, its just that they won’t talk to us, or at least not about loaning us any more capital. If fact, often they are demanding that we repay the capital that they previously loaned. 

Capital and liquidity to our businesses is like food and water to our bodies. Without it the business shrivels up. We have to have it to live but the amount available comes and goes depending on the season and the markets. 

When was the last time your banker called you offering you a great deal on a line of credit? When was the last time you received an offer for “zero” percent credit card? Yeah, me neither! 

According to the forecasters of the capital world the tight credit market will stay this way until some time in 2010. Can you wait that long to reestablish the ability to get new sources of working capital? Most companies cannot.

Blue Water has the flexibility and the network to create many alternative ways of providing capital. If your business needs working capital and you have receivables, or inventory, or existing equipment, Blue Water may be able to show you how to get it done. Visit www.bluewaterfinancialpartners.com for your working capital needs