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Charting a Better Course
Communicate with your banker: More communication pays good dividends today. "In times like these, we reach out to understand exactly what's happening in our customer's operation to help them manage risk," said Jim Lynch, CEO and President of Leaders Bank. Network: Leaders can connect you with professional service contacts who can aid your business, or business owners who may become a customer, supplier or even purchaser of your business. Benefit from borrowing: "The biggest thing a company could potentially take advantage of is the ability to borrow more cash in a down economy," Lynch said. "That ability may not exist for many, given their financial condition, but if the company has a good relationship with the bank, has managed well, has minimal debt and reasonable liquidity, then they should be able to take on additional leverage to seize opportunities." Plan: The recession shows the importance of planning effectively for a downturn, holding debt at reasonable levels and keeping reserves available. You'll be able to manage better through tough times, with less stress. |
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