Cut Costs or Invest in Growth?
The Wall St. Journal reports today on growing tension at venture-backed companies over whether to save money to reduce risk or invest to take advantage of new opportunities. You can…
Short Term Solution – Long Term Problem?
The Wall Street Journal recently published further anecdotal evidence of the mixed messages that companies are receiving ... and giving ... about the expected upturn. While some 25% of companies…
Furloughs vs. Layoffs?
I have written frequently about personnel decisions and offered various references on the relative value of furloughs and layoffs. The WSJ today published another article on this subject that compares…
Business Finance | Have you met the Scavenger’s Daughter?
Impressing your bank less important than being able to hit targets
The Scavenger’s Daughter? Might be the name of a lost Dickens novel … or an indulgent misnomer for a the infamous rack that not only stretched but crushed its victims during the reign of King Henry VIII.
Thumbscrews, pilliwinks, breaks and the tormento de toca were other methods used to punish those that broke their “covenant” with the King.
Fortunately, those punishments are relegated to history’s ash heap … at least I’m pretty sure that banks aren’t using any of these default provisions.
Compliance with financial covenants
Compliance with financial covenants, however, has never been more important. Today, banks have an arsenal of covenant choices that are used as an early warning system to alert participants to potential problems that may jeopardize their financial well-being.
It’s important to recall that covenants are based upon (more…)
Straight Talk. All the Time . . . for Entrepreneurs
We're proud of the "Straight Talk. All the Time" mantra on this site. Jason Calacanis of Maholo.com and founder of Silicon Alley Reporter stays close to that line in his…