Small Business Preparing for Increasing Challenges – Valcor Concerned at Ominous Trends
|Small business owners are asking “Is there a bottom in sight?” Simply put; No. In the decades Valcor has provided small business Debt Mediation services, the economic trends have never looked so disturbing.|
Valcor works with small businesses to provide alternatives to litigation and bankruptcy through work-outs and business debt mediation. Valcor enables small and medium sized companies to survive, keeping their employees on payroll and establishing sources of capital acquisition.
Brent Kahlen, Valcor’s Executive Director stated “In 30 years of helping business owners, I have never seen so many companies in trouble. Some unfortunately are simply too far gone and we are unable to help. Many, however, we contact at the perfect time, using our copyrighted systems to identify those that urgently need our services. Once we qualify them, we are able to turn their business around, in many cases within 2-3 weeks and the business owners are grateful.”
“The incredible rewards that we enjoy are beyond financial; We know we have kept a business viable and operational, and the thousands of workers who rely on their employers to stay solvent, would otherwise be laid off. In today’s high unemployment economy, is a great feeling! I cannot tell you how appreciative our clients are. It’s heartwarming”.
The ominous trends that have the officers at Valcor pessimistic are numerous. Valcor’s CEO, David Sussman, M.A. stated “We are amazed at how severe this economic downturn is and continues to be for small business. While the big Fortune 500 corporations have cut payrolls, enjoyed government bailouts, or closed under-performing business units, the small business owners do not have the same options. Many business owners rely on local banks to secure financing. With the number of defaults increasing in both commercial property and lines of credit, banks are simply not lending anymore to small business. This is causing a severe problem for those businesses that rely on banks to provide working capital. Alternative lending sources are now king.”
Mr. Sussman continues “We are working directly with commercial banks. While banks are not lending much money they are in major collection efforts. Bottom line, banks are simply trying to shore up their accounts and survive.”
“The fact is, according to the FDIC, we have seen over 80 bank failures year to date, which has surpassed bank failures this time last year, and 2009 was a record year.”
The team at Valcor works directly with business clients and indirectly through a network of trained Licensees throughout North America. The Valcor Business Debt Mediation Licensee Training Programs, which have been provided since 1994, have allowed accomplished business consultants the ability to provide the Valcor systems locally. Valcor enjoys “Merged Accounts” working directly with Licensees and their clients.
Mr. Sussman states “While the U.S. economy appears to be mired in malaise, the global economic crisis is growing which will only continue to exasperate the U.S. problems.”
“Obviously we see how the European financial problems are effecting the U.S., which is leading to lowered demand for U.S. products. However, the problems are larger than Europe. China’s explosive growth has benefited the U.S. as they have been able to buy the ever-increasing and alarming U.S. debt load. What happens if/when China slows down, which reports signaled this week, is now happening. China will no longer continue to buy U.S. debt at the paltry interest rate levels offered. Therefore, the U.S. will not have a choice other than to increase interest rates.”
“The effect on the already poor economy can be devastating as the U.S. consumer based economy may come to a literal halt. Housing markets, already in turmoil can collapse. Commercial property, already in a sea of red ink will become the downfall for many banks teetering on the edge. All forms of consumer goods that rely on low interest financing, including automobiles will no longer be affordable. Austerity can become the norm.”
“This isn’t an economic doomsayer talking… it’s a generally optimistic business consultant who sees economic realities on a macro level. Frankly, it’s scary, and everyone should understand what is potentially on the horizon.”
The Valcor team and their network of Licensees will continue to provide their assistance to small and medium sized businesses as the number of clients grows each day.
Valcor does not render legal advice, and works directly with law firms working on behalf of their clients. Valcor does not provide any form of personal “debt settlement” or personal “loan re-modification” programs. They strongly urge any person seeking these services to work with their local non-profit credit counseling services.