Policy shocks dont just reduce margins they affect trust. #shorts

These policy shocks don't just steal margin, they steal trust. Because when your business is getting impacted by this volatility, your banker sees it in your financial statements. So if you have financial statements that are getting audited and reviewed, or some form of a compilation, the reason why a banker looks at it is to determine your ability to service the debt. They have things like debt covenant ratios. This is when things around the lending that they've extended to can actually start changing too. If you're not able to access capital like from credit, most business owners will find themselves funding that working capital from personal savings, remortgaging their home, or some form of capital so that they can inject into their business and use. When that event happens, when you're spilling personal capital into corporate capital that's delaying your retirement.