Owners of print and graphic communications companies should be concerned about their banking relationships if their business, similar to many in our industry, had disappointing financial results in 2009. But the risk of a turning a small headache into a major problem is magnified by two overarching realities: (1) financial statements for 2008 may not look good after taking a hit during Q4 2008 AND (2) the banking world does not embrace 3 years of lousy profitability during a credit crunch.
In other words, look at your company's financial statements as a banker would: what is the net profitability for 2008? 2009? If there are losses, there are looming bank problems.
Here's the point: YOU MUST MAKE MONEY in 2010. Period. You can NOT go to the bank with 3 years of lousy financial statements and expect good treatment. The bank is likely to tighten up its credit and, in many cases, the banks are forcing borrowers into repayment plans that serve to essentially the liquidate the company under the guise of "we're working with you."
Here's the shameless sales pitch but it is true: we at NAPL offer affordable, industry-specific resources to diagnose and prescribe remedies for owners of printing companies who are experiencing bank problems. Do not hesitate to contact me in strict confidence for a confidential consultation.
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