Credit Markets: Not out of the woods yet
Like other sectors of the economy, news from the credit markets are a mixed bag of good and bad news. On the one hand, you have signs that consumer credit is loosening, which obviously helps the consumer driven US economy and possibly indicates loosening of business credit as well. But then on the other hand, you have dire news like the CIT bankruptcy.
While things may be headed in the right direction, companies may still face challenges with credit and liquidity for quite some time, especially with companies continuing to extend their payments. As Drew Hofler recently noted, 70% of companies are currently or are planning to delay payments to suppliers. And yesterday, a BusinessWeek contributor actually recommended you “never pay your vendors on time.”
While cash is king … yet hard to find, you have to know your options. We’ve had quite a bit of coverage on the topic in recent months, so I thought it would be helpful to highlight some supply chain finance videos from the vault…
Drew Hofler outlines many of the liquidity options on the table:
Procurement Leaders’ Mark Perera shared his insights on supply chain finance in this 2 part interview:
We’re out of the woods yet, but there are options out there.
Justin Fogarty is Managing Editor of Supply Excellence. For any questions or feedback on the blog or its contributors, Justin can be reached at jfogarty[at]ariba.com.