So here we are, collectively numbed out with those bewildered deer-in-the-headlights, pit-of-the-gut stomach churning feelings. Investment portfolios down 30-40% on average, Business in the dumpster and the Christmas bills rolling in any day now. Grump.

We'll soon see if we get an opportunity to witness some real entrepreneurs in action. Who will be the ones to overcome "Entrepreneurial Inertia", stepping up to the edge of a never previously imagined black hole of a collapsing economy and having a good belly laugh. Old saw about the 'opportunity in crisis' remains to be seen while just about everyone is still paralysed, either by denial, naivete or shock (the latter group being the realists in the crowd).

Part of what I can offer is some insight into how the credit system works and how business owners can work within the credit granting framework (gosh, wouldn't want to say "game it") to maximize the opportunity to borrow in these interesting times. Based on my experience, one of the key factors will be to get financial records current, ensuring -- even guaranteeing -- their accuracy, and then keeping them that way for management purposes, to the extent that the information is available on a daily basis. Call it a real-time post, audit and reporting financial system.

Of course, such a system is still in the dream stage, and would come as a shock to many accounting firms --who typically are still labouring away to produce financial statements for most companies three to six months after a fiscal year-end. Oh, that's really helpful info -- watch the credit guys get all giddy about that kind of reporting... happy squealing at the other end of the phone. Ok, not so much. How can the credit folks realistically assess current business risks with financial statements that reflect history? Now, anything past the last three months is considered ancient history, as in "useless". Without at least fresh interim statements one big leg of the tripod of the credit decision making process is missing.

So, Rule #1: When you go to borrow have your financial statements up to date. Beat on your accountant to ensure timeliness and accuracy, and spend the money to have him prepare interim statements for your current results, especially if your annual statements are more than 2-3 months old.