The economy is rebounding swiftly and the future is looking bright, according to some people inside and out side of the media. To others, the debts carried by our government, the high unemployment rate, and the still lethargic real estate market suggest a more pessimistic outlook. I tend to fall in the second camp. This is not because I’m not a naturally optimistic person, but rather because nearly of the evidence points that way. Real estate is a prime example, as according to Reuters, home prices have declined for 53 straight months (other media sources show shorter time periods, as they use different methods of calculation).
The few bright spots in the economy, like the rising stock market, don’t have the legs to keep powering forward much longer. In the near future – though nobody knows exactly how near – more individuals and businesses will default on their obligations, values of key asset classes will fall, and the compass of the economy will point to “R” – for recession.
At that point, cash will be king. As it will become harder still to get a loan, many individuals and businesses will need to trade in future income streams to pay current bills. This can take a variety of forms. For individuals who sold property and are carrying a real estate note, they may need to find a mortgage buyer to whom they can sell their real estate note. For businesses, the right solution may be to raise working capital by doing invoice factoring (a form of accounts receivable financing) or, for those in the health-care field, some form of medical factoring (also known as medical receivables factoring).
For individuals and business owners, it becomes more important than ever to understand their financial situation and make conservative projections for the near and medium term. After all, the country will eventually emerge on the other side of this approaching financial fiasco, so staying in survival mode is a smart way to go.
Alan Noblitt is the owner of Seascape Capital Inc., which buys real estate notes from individuals and provides business factoring and medical receivables factoring to businesses. He may be reached at (858) 672-4678 or toll-free at 1-800-634-4697. If you would like to learn more about these areas and read informational articles, visit www.seascapecapital.com.
Blog url :- http://seascapecapitalblog.blogspot.com/
CASH IS KING … LONG LIVE CASH