This quote encapsulates the feeling in the marketplace for money right now. Everything that was recently passed over or given no more than a cursory review is now being scrutinized in order to identify redundancy and save money.
It's no different in the lending world; we need to scrutinize files more carefully now because conditions aren't the same in any industry given that prices in general are going up but there are also wild swings. The price of lumber spiked last year for example causing pain to many industries and now prices are crashing back to "normal" whatever that means anymore lol!
For business owners, this whiplash of pricing in critically needs products and services has created gaps in their normal pricing/cash flow models - it's really thrown a spanner into the works of most business models and seriously mucked things up.
"The bottlenecks of resources — energy, commodities, metals, all material things — plus the growing scarcity of real capital (as in representations of genuine wealth), guarantee that nothing organized at the gigantic scale will be able to continue — certainly not any global political administration. The WEF is a fantasy factory; all it can really produce is chaos and misery."
Time will tell if this change is for better or worse however, for now we need to prepare new, sometimes untested methods to get things done.
For example: Right now the banks are having a hard time and that's understandable because the environment of low interest rates and free (zero rate) money from the Federal Reserve is over and that benefited them greatly. With that support gone, their appetite for new commercial loans is also gone leaving many business owners who would otherwise have immediate access to cheap working capital without critically needed funds.
Recently I've been seeing many, very high quality credit profiles seeking funds for their businesses. These owners already have quality banking relationships however, they're falling short sometimes because things are all mucked up now and shipping dates, vendor payments, Accounts Receivable and just about every conceivable metric is different somehow.
Already we're seeing signs, many of them. Something isn't right:
"The Energy Information Administration (EIA) reported this week that, as of Oct. 14, the U.S. had only 25 days of reserve diesel supply, a low not seen since 2008. National Economic Council Director Brian Deese acknowledged to Bloomberg that the level is "unacceptably low" and that "all options are on the table" to address the situation."
The best advise I've heard about how to best deal with the current environment is "Get finer, smaller in scale and more local" for those who can. There are already major changes happening right now and some of you will need capital to take advantage of them - call me.