It’s a new season for me. A lot of changes are happening with amazing force and speed. I started Shelton Business Services, LLC, a new executive coaching and management consulting business in 2011. My daughter left home for the U.S. Air Force in June. Today I’m adjusting to another new reality.
I invited my mom to move from Wisconsin to Arizona after we moved here. Now, after 19 years of being the go-to-guy for her, she recently decided to make another move from Arizona to Texas. What drove the decision? Choose from the possibilities: the record summer heat in Arizona this year, a string of hospital visits, rehab center experiences, my layoff and the uncertainty of the future with a business startup, the changing colors of life’s autumn, I made her mad, all of the above, none of the above…
Yesterday we loaded the moving trailer with the accumulations of her life. It was a noble effort thanks to my wife, brother, his friend and my sister and some hired hands who came together as an efficient moving team. It was a long and SWEATY day of packing and taping, marking and moving. But at 8 p.m the doors closed and the caravan pointed east towards Texas. I’m still here in Arizona adjusting to the new reality. God‘s blessings on your journey mom and sissy.
All of this leads to my point for borrowers. The recent lending and capital markets reports indicate a potential new debt season. Banks are relaxing credit conditions for businesses. Loan pricing and terms are moving towards pre-2008 crisis levels. But, where will the borrowing discipline come from this time around? From the lenders, the government or, preferably, from the business leaders themselves?
Borrowers, there’s a chance to make a difference but it will require a fundamental business debt lifestyle change. No longer can you sign up a for a loan simply because your lender offers it or because your competitor got the same terms. No. Businesses leaders can choose to make smart borrowing decisions that dial into strategic business and capital plans. Be more durable by borrowing conservatively instead of running your debt coverage engine to the redline. How will you choose this time around? Get ready for the coming capital season.
- Interest-only mortgage lenders could face higher repayments (money.marksandspencer.com)
- Americans charge more; borrowing up $5.1 billion (kansas.com)
- US Senior Loan Officers Still Not Seeing Surge In Borrowing (forexlive.com)