For lenders like us, last month’s news cycle felt like a scene from Twister—thrilling, terrifying, and pretty baffling all at the same time.
Between high inflation and high employment, supply chain partners overseas growing even more wobbly, and a flaming political meltdown in the UK giving low tax policy a bad name…I all but expected an airborne cow to fly over the windshield.
Still, and while there does come a time to batten down the hatches, I like to remember one thing.
Adversity’s usually a base ingredient for greatness.
If we see it in sports, start-ups, the hero’s journey, and much of history, then it probably applies to everything around us. As we all know but sometimes forget, poor economic weather comes with silver linings.
Memes of the Day
Sure, people are getting ready for a recession…or at least, believing rumors about one. By most estimates, commercial loan originations have fallen off a cliff. When originations go down, and problems go up, it’s like Dr. Hunter S. Thompson once said: ‘Buy the ticket, take the ride.’
But you don’t have to look that far to find private lenders seizing opportunities to rise from the ashes. With no bells and whistles, I’ll quote an article on Pitchbook.com on the likes of KKR calling the current economic climate a ‘great backdrop’ for private credit lending.
“While the private equity firm is prepared for potential credit rating downgrades and increased overall pressure on this market, Evercore said KKR’s management is “ready and nimble” for potential opportunities, armed with $12.5 billion for credit and liquid strategy.”
-Jessica Hamlin, Pitchbook.com
Even when the Fed whisks the punch bowl away, it’s a safe bet that in another room of the house, someone’s prying open a minibar to keep the party going.
Yes, lending rules at banks are tightening. Yes, accountants everywhere are cleaning house. But that’s already kicking off opportunities elsewhere.
Refer to Dare Capital
If you won’t or can’t lend, or if there’s loans you’d like to get off your books, give us a call. We specialize in working capital via AR Factoring and ABL for B2B businesses. Our distilled blend of risk, camaraderie, and common sense finance is Texan through and through.
We’re all about working capital for growing companies, and our mission is empowering the people behind them to finish their journey.
Recession fears? Readjustment?
We’re just getting started.
Give us a call and we’ll tell you more about the Dare client experience.