The Cash Flow Blog

On the heals of yesterday’s post on limited commercial lending, here’s a Reuters article that adds further frustration to the topic.  According to the article, stimulus money intended for small business isn’t reaching potential buyers because the lenders don’t want to take it — the strings attached aren’t considered good business for the banks.

The problem?  Paperwork and potential restrictions from the government on dividends and payroll of the banks making loans.  That and some banks are concerned of a potential stigma of being known as an institution that took stimulus money.

The middle-man in the deal doesn’t like the deal.  And that may mean businesses who can benefit from a loan — if not have a necessity for one to survive — may not get one.

Bankers said they are hesitant to take capital injections from the government because of the stigma and the potential restrictions on dividends and compensation…The bankers said the SBA loan program has promise but involves a lot of paperwork and takes a long time to process the loans.

Here’s the rub

As shared in yesterday’s post, banks are cranking out new credit card programs left and right to bridge the gap in lending.

So, what’s a business to do?  When it comes to access to commercial lending, it appears small businesses are facing the reality of damned if you do, damned if you don’t — taking credit where you can get it or throw-in the towel.  Even if it means taking money with up to 30% interest.

What do you think about all of this?

The first report is in — Utah’s experiment with a 4-day workweek appears to be a success.  In the first year of the program, the state reduced it’s operating expense by $4.1M.  That may not seem like a lot to some, but it’s significant as a result and begs the question of how much greater a return it can net?

Savings were found where you’d expect — for example, energy and janitorial. The surprise came in the reduction of overtime.  Preliminary conclusions are working four 10-hour days reduced the need for overtime by allowing more work to be produced in a given day.  Interesting.

Employee moral was reported up as well.    Although the article didn’t mention it, I’d be curious to see what affect there has been on sick-days — Do people who work four 10-hour days a week take less sick time than employees who work five 8-hour days?

Regardless, changing your work schedule should be considered as a way to smartly reduce cost.

What do you think?