Inflation challenges rise – worry about the macro but focus on the micro

Sometimes you need to step back, take a deep breath to separate the wood from the trees.The economic environment has changed massively. The changes are not just cyclical or temporary as the economy moves up and down. And changes cover both economic and social aspects. Businesses need to adapt to both near-term shifts, but deeper […]

The economic cycle has turned and the piper needs to be paid.

Warren Buffet once commented that when the tide goes out, you find out who has been swimming naked. Skinny-dipping has been rampant. The economic cycle has turned and the piper needs to be paid. Inflation is rampant. Taming inflation is not growth (think business revenue), margin, or asset price friendly. Night follows day just as […]

How far will central banks be prepared, or need to go, to tame inflation?

Businesses should be mindful that central banks are now on the warpath against inflation with the rhetoric and expectations towards higher interest rates ramping up.  Businesses need to be thinking about what it means for them as the economy moves from the boom into reset mode.  Many business people have not seen the destructive impact […]

The Rise of Non-Banks and Boutique Solutions

The housing market has traditionally been a key funding source for businesses and also entrepreneurs looking to have a crack at an investment.  The balance sheet was leaned on.  Clever business bankers dressed up business loans in housing attire.  Those days look to be ending, one reason being the Credit Contracts and Consumer Finance Act […]

Stop Banking On The House

The credit environment has significantly tightened, especially in the housing arena, and of course this has flow-on implications for businesses reliant on lending secured by residential property.  The house has been the implicit financing vehicle for many businesses.  Tighter access to credit could make 2022 a crunch year for undercapitalised small-medium sized businesses that have […]

Change is the New Normal – Buckle up For 2022

Buckle up for 2022. In 2020 we navigated COVID-19 with success.  2021 was a mixture of basking in post recovery sunlight and then the reality as COVID-19 reappeared. The coming year looks set to be fraught with uncertainty, as we learn to deal with the enduring impact of COVID-19, but many other issues too.  Change […]

Economic Uncertainty Highlights The Importance of Positive Cash Flow

Debt levels are the normal focal point when talking about financial vulnerabilities.  An under-appreciated reason for business failure is a lack of working capital, i.e., the cash to manage short-term commitments and operations. Having sufficient working capital and cash flow are business basics.  They will be key areas to watch over the coming months as […]