Banking On Credit

International Trade ForumNum. 1, Janvier 2009

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Résumé


In 2009, they are not in normal times. The credit blackouts have meant that even those firms with ample access to credit in the past are seeing lines cut, when in fact they need them most. Lack of credit can quickly become more of an insolvency issue, when companies who otherwise are healthy and have good demand are faced with cash flow challenges as their customers delay payment to them. The role of the National Development Banks to ensure that companies have access to affordable credit has never been more important in the last few decades than it is today. Moreover, Export-Import Banks have an equally critical role to play, as facilitators of trade through the provision of finance, guarantees or credit insurance.

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Banking On Credit

Having access to finance is like having a generator in case a power outage causes blackouts. You need your line of credit especially when there is a crisis, but if you manage your cash flow well, you may not n...

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