Every business that succeeds in a recessionary environment has one thing in common – access to capital.

These last few days with now three bank failures should be a concern to everyone.?While the media focus has been on deposits, there is another problem brewing and if affects everyone. Credit capacity and desire to lend is under credit risk review across the country. Your primary lender may assure you everything is fine, but every relationship is under review to determine the bank tolerance to lend additional dollars. This has occurred in every recession, and the drivers are loss of deposits (their lending capital) and concerns about a downturn economically and its impact in every industry. This is not limited to technology.

Every business that succeeds in a recessionary environment has one thing in common – access to capital. It’s critically important to establish multiple lender relationships for continued access to capital to grow and manage your business.?Many of the technology bank clients only banked at one institution and hadn't considered establishing additional?lender relationships and capacity.?If you start today, credit review with any new lender is a 3–4-week process.

With respect to your aircraft please remember these are non-revenue producing assets with a high price tag.?They are structured with long amortizations and loan balances that remain high through the term.?They eat up a large amount of your credit capacity, and they will be cross defaulted to your other loans with the lender.?If you are considering an additional aircraft purchase or considering a refinance of your existing loan to gain cash flow relief, we can help you establish a new source of capital.

Please reach out to us for further discussion.

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