Bernard Lietaer, Gwendolyn Hallsmith, Making Money for Business: Currencies, Profit, and Long-Term Thinking, The Solutions Journal, Volume 2, Issue 5, September 2011, Pages 64-69 ( Abstract: Note: This piece includes an excerpt from the authors’ new book Creating Wealth: Growing Local Economies with Local Currencies (New Society Publishers, 2011). The financial meltdown of 2008 highlighted the role that banking systems play in the world economy, bringing financial and monetary instability into focus as a driver of collapse. Not since the Great Depression of the 1930s have so many people been aware of how banks make the system work—or don’t. But even without a financial crisis, working capital is a problem, particularly for small- and medium-sized enterprises. Suppliers pressure smaller businesses for prompt payments, say within 30 days, while they grant their larger customers 90 or more days to pay. This becomes a deadly cash-flow trap for smaller businesses whenever banks refuse to provide bridge financing or do so at a steep cost through high interest rates or punitive collateral requirements. This problem has become more critical in developed … Topics: Business; Economy