Credit plays a central role in the way businesses operate. 
With the US credit crisis, many lending institutions are hesitating to lend, especially to small companies that do not have large assets to provide as collateral. However, small businesses’ investments are crucial to the economic recovery, so the US government is searching for solutions to this problem of credit. One solution offered by BusinessWeek columnist John Tozzi is for small businesses to provide extra cash as collateral. This innovative idea will challenge small businesses to keep a healthy cash flow and have great liquidity. In order for them to provide their cash reserves to the lending institutions as collateral and to use cash on a daily basis for normal business operations, small businesses must be highly efficient in their cash usage. The Accounting and Finance Departments must collaborate to ensure the company stays healthy financially. 
For example, where the accountants analyze liquidity ratios to make recommendations to improve liquidity. Financial analysts research the investments that will generate the largest returns for the company. An in-depth look at John Tozzi’s proposal shows how closely different departments within the company are required to work in order to achieve a high credit rating.
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