Surviving Tight Credit


cloud. But we have to have a president who is committed to expanding the minority business community and who understands that access to capital is the main culprit in the denial of minority entrepreneurs the opportunity to be successful.”

So what survival strategies can black-owned businesses pursue now? “For small or minority business owners, everything must center on preserving and building working capital, i.e., cash and liquidity,” Boston says. “Business owners should generate reports on their cash position several times a week and forecast it realistically into the future. It doesn’t matter how much receivables you have or how much revenue you are currently generating. The only thing that matters is whether or not you can pay your current bills. In the current environment, it is unlikely that you will be extended credit unless you have a very stellar record. So the wise strategy is to build and preserve cash to weather the hard times ahead.”


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