Current Economic Conditions

The economic conditions have deteriorated significantly during the first quarter. The number of people signing up for unemployment benefits shot up to 5.1%, the highest level in more than two years.

Individual’s homes are being foreclosed at the largest rate in history. Gasoline is approaching $4.00 per gallon. The financial system is in turmoil. To date, banks and brokerage firms globally have incurred losses in excess of $215 billion dollars.

These conditions have caused people and business to curtail their spending on discretionary purchases and capital investments. This spells Recession.

To bolster the economy the Federal Reserve has been cutting the key interest rates to induce people and companies to boost their spending.

What Can You Do To Protect Yourself And
Your Business During These Difficult Times?

• Obtain a signed credit application

• Check credit references

• Obtain a personal guarantee until you have established a working relationship

• Terms COD

• Terms Net 30

• Be mindful when lending money

• Execute a promissory note whenever you loan money

• Turn accounts over to collections when a debt becomes thirty to forty five days past due