In recent years, it has become common for economists to attempt to proclaim when the next recession is coming. Everyone is trying to find THE indicator, but in the meantime, shining a light on all the worries for your economy. The podcast, “The Indicator” recently did an episode on 3 worries, but the one that stuck out to me was concerning corporate debt.

Currently, there is about $15 trillion in debt in the US for nonfinancial businesses as for Q3 2018. Granted, debt isn’t a sign of troubled times, by any means. My takeaway for the Planet Money podcast was that the real concern lies in the change in dynamic between borrowers and investors. Previously, investors could set rules for the borrowers – safeguards for the investors; but the borrowers have the power and the contingencies went out the window. This just makes the system a little more reckless and fragile and increasing the likelihood of defaulting on the debt.

Now, I am not saying this is the cause of another recession or saying you will default because the system is a little unbalanced. However, if you find that your business does have debt and this is alarming to you, the first step is not to panic and to start addressing the problem.

Obviously, since my business is in cost-reduction, I am suggesting that you first look at cost-reduction. You probably have the means to get some cost-reduction yourself, but if you are seriously alarmed, hiring professionals may be your best bet. If I had a crocodile in my pool, I would be spending my time finding a wildlife removal company, instead of wasting time trying to coax it out and possibly put myself in harms way. Professionals have a wealth of experience and knowledge that increases the speed and efficacy of the unrealized savings. In addition, at Silverback, you do not pay any fees until you find money – so you save time, no matter what, and are guaranteed to only pay for a service that is successful in saving you money.

The cost saving strategies are built on finding unrealized savings – A.K.A. found money. Found because companies do not write into their budget that this is a source of income, which means you have more flexibility on how to spend the money – like on reducing your anxiety over debt and impending recession. 

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