Given the current instability of the banking industry, there are several actions that businesses should consider taking:

  1. Be cautious about getting deeper into debt with your main bank: Most bank lending documentation have a call provision whereby if the bank is in trouble they can call your note. Be careful about having too many eggs in one basket.
  2. Diversify your banking relationships: Spread your funds across multiple banks rather than relying solely on one institution. This can help mitigate the risk of any single bank failure affecting all of your funds.
  3. Monitor financial health: Stay informed about the financial health of your bank(s) by regularly checking their ratings and financial reports.
  4. Maintain a strong financial position: Focus on maintaining a strong balance sheet with healthy cash reserves and low debt levels. This can help position your business to weather any potential economic downturns.
  5. Explore alternative financing options: Consider alternative financing options such non-bank lenders, like American Capital Group, which may be more resilient to banking industry volatility.
  6. Consult with a financial professional: Seek advice from a financial professional who can help you navigate the current banking landscape and develop a comprehensive risk management strategy.

By taking these proactive measures, businesses can better manage the risks associated with instability in the banking industry.