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The credit crunch has rapidly made its way from the USA to all corners of the world, including South Africa . Businesses across a wide range of industries are feeling the pinch and there is an overriding feeling of gloom. Reduced lending by banks compound an already difficult environment in which key commodity prices and the rand are falling rapidly. Some geographies and industries are proving more resilient than others. Notwithstanding the fact that two rating agencies have downgraded SA's outlook to negative, Trevor Manuel has given some reassurance that South Africa falls into the category of resilience.

Grant Thornton has produced some proactive, practical advice on how companies can prepare for the challenging days ahead. We have published "The credit crunch: a practical guide", which includes a 10 point plan. Each point contains fundamental, useful information to assist companies as they navigate through this difficult time.

Furthermore, we have developed a diagnostic questionnaire to help companies determine whether their business, suppliers or customers might be at risk of financial distress. By frankly answering the questionnaire, companies will be able to asses where they stand. The guide provides some points, including how to deal with a "worst case scenario.


10 point plan

cash is king
be relentless on cost control
evaluate customers and suppliers
get smarter on tax
reconsider capital investment plans
get closer to your bank
keep an eye out for bargains
re-visit your strategy
align performance and rewards
protect your personal wealth