Economic Hurricane? Timeless Advice For Your Small Business Finance Company

| By:

stocks down“You know, I said there’s storm clouds but I’m going to change it … it’s a hurricane,” said JPMorgan CEO Jamie Dimon about the current economic situation. “JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet.”

At the very least, Dimon is predicting that a recession may be just around the corner. And if that’s the case, we dug up some timeless advice about how a small business finance company can brace itself for such a scenario. These quotes are from 2016 when economic experts were already beginning to wonder if the economy had already overheated, if you can imagine that.

“If the market moves sideways and you rely only on a single source of funding, you are at risk. It’s an incredibly obvious statement, but it becomes more acute when the economic environment comes under pressure.” – Glenn Goldman

“Liquidity is king. The more that participants in this market are able to diversify their capital structure, diversify their funding sources and work with multiple providers, the better off they will be.” – David Snitkof

“[Funders will have to decide] to tighten and pivot while the rest of the players in the space are going full steam ahead. That’s where you have to have some conviction and trust your data and do the right thing.” – Stephen Sheinbaum.

“Just because someone paid you back yesterday doesn’t mean he’s going to pay you back tomorrow. You have to be right more often in a recessionary environment.” – Andrew Reiser

“A small recession could lead to big failures if you don’t take the right steps.” – Yoel Wagschal

In April 2016, when recession predictions were making the rounds, the S&P 500 was ~2,000, Bitcoin was $450, Ethereum was $8, gas was ~$2.20/gallon, and few, if any people, believed that Donald Trump would ever become President.

Last modified: June 2, 2022

Category: Business Lending

Home Business Lending › Economic Hurricane? Timeless Advice For Your Small Business Finance Company