Will credit tighten up in a recession? It absolutely will. If we go into a recession credit will absolutely tighten up and here are some things you need to be doing and be thinking about doing these right now.
In every single recession banks tighten up and credit in general tightens up. If we look back to 2008-2009 in the financial crash every credit card company was cutting credit limits, home equity lines of credit were cut, business lines of credit cut -everything got cut down. Every lender tightens up because they don’t know who the winners and the losers are going to be. You may have a great business but if your industry as a whole is not performing well so lenders stop lending to it completely.
Be Prepared Financially
You want to apply for financing when things are good and be prepared. You absolutely want to be proactive with capital. It’s SO important. So many business owners wait and be reactive to the situation when things aren’t good, then they go run and apply and then it gets really hard to get approved. Be prepared, apply for financing when timing is good.
I am a business funding agent. I will help with no obligation to you. We use private capital, and we only work with the best lenders to get the best terms your business can qualify for. No hard credit pulls ever. When banks, friends, and family say no, we say yes. Book a time with me to discuss your options!
But more importantly you want to be prepared mentally. Mindset is everything in business. Your mindset and your culture of your company will beat strategy every day of the week.
It’s just as and equally as important as being prepared financially.
Have an Action Plan
Put yourself in that situation right now. If there was a major downturn and things tighten up in your business what are the things you could do? What’s your action plan? Put your action plan together now. Where would you cut costs? Where would you spend more?
If there’s a pull back it’s going to shake up and create challenges for all of your competition so if you are prepared mentally and financially you can really do very well in a downturn and outpace your competition because everyone pulls back in a downturn.
Put yourself in that situation today, mentally. What are the things you could do, what are the steps you could take in your business, your market, your area? List all the steps you might take. List out all the spending you don’t need. Get it down on paper.
Share it with your team. Share your plan with your team so your whole team is prepared to win in every type of economy, and every type of market.
When a downturn happens it happens overnight. What happens in extreme situations is we freak out and mentally panic. But if you’ve thought these things through you can be prepared and already ready to act.
Then, coming out of a recession you can take market share and eat your competitors’ lunch because you’re still hustling and doing things when they’ve pulled back and are not doing things because you’re prepared mentally and financially.
#businessowners #business #team #mindset #strategy #strategy
I am a business funding agent. I will help match you to the best lenders and get the best terms your business can qualify for.
Book a time with me to discuss your business funding options!
Will credit tighten up in a recession? It absolutely will. If we go into a recession credit will absolutely tighten up and here are some things you need to be doing and be thinking about doing these right now.
In every single recession banks tighten up and credit in general tightens up. If we look back to 2008-2009 in the financial crash every credit card company was cutting credit limits, home equity lines of credit were cut, business lines of credit cut -everything got cut down. Every lender tightens up because they don’t know who the winners and the losers are going to be. You may have a great business but if your industry as a whole is not performing well so lenders stop lending to it completely.
Be Prepared Financially
You want to apply for financing when things are good and be prepared. You absolutely want to be proactive with capital. It’s SO important. So many business owners wait and be reactive to the situation when things aren’t good, then they go run and apply and then it gets really hard to get approved. Be prepared, apply for financing when timing is good.
I am a business funding agent. I will help with no obligation to you. We use private capital, and we only work with the best lenders to get the best terms your business can qualify for. No hard credit pulls ever. When banks, friends, and family say no, we say yes. Book a time with me to discuss your options!
But more importantly you want to be prepared mentally. Mindset is everything in business. Your mindset and your culture of your company will beat strategy every day of the week.
It’s just as and equally as important as being prepared financially.
Have an Action Plan
Put yourself in that situation right now. If there was a major downturn and things tighten up in your business what are the things you could do? What’s your action plan? Put your action plan together now. Where would you cut costs? Where would you spend more?
If there’s a pull back it’s going to shake up and create challenges for all of your competition so if you are prepared mentally and financially you can really do very well in a downturn and outpace your competition because everyone pulls back in a downturn.
Put yourself in that situation today, mentally. What are the things you could do, what are the steps you could take in your business, your market, your area? List all the steps you might take. List out all the spending you don’t need. Get it down on paper.
Share it with your team. Share your plan with your team so your whole team is prepared to win in every type of economy, and every type of market.
When a downturn happens it happens overnight. What happens in extreme situations is we freak out and mentally panic. But if you’ve thought these things through you can be prepared and already ready to act.
Then, coming out of a recession you can take market share and eat your competitors’ lunch because you’re still hustling and doing things when they’ve pulled back and are not doing things because you’re prepared mentally and financially.
#businessowners #business #team #mindset #strategy #strategy
I am a business funding agent. I will help match you to the best lenders and get the best terms your business can qualify for.
Book a time with me to discuss your business funding options!
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labanjohnson
Laban Johnson is a seasoned entrepreneur and polymath, leaving a trail of impact in every endeavor. With over 25 years of diverse experience in businesses of all sizes, local governments, the military, and non-profits, Laban has accumulated a wealth of skills in business administration, risk management, internet marketing, and more. As the founder of LJLearn.com, Laban channels his expertise into making quality educational resources accessible to all, empowering individuals and businesses alike to unlock their full potential. His rich background as a business administrator, project portfolio manager, risk analyst, life coach, and financial advisor has sharpened his ability to tackle challenges head-on. A proud founder of ONPASSIVE and a philanthropist at heart, Laban is dedicated to revolutionizing businesses in the digital age while making a tangible positive impact on society. Through LJ Group and LJ Learn, he curates and shares the most valuable of his experiences, ensuring his clients achieve unparalleled success.