Australian small caps is a volatile asset class and one for the long-term investor. With recent offshore bank failures and some concerns creeping into credit markets globally, balance sheets and cashflow come into focus, especially at the smaller end of the market where many companies still require funding for growth plans. While we don’t make macroeconomic calls and are by no means suggesting that there will be further issues to come, it is worthwhile exploring how Australian small cap companies are positioned if there is to be another banking crisis, by examining lessons from the Global Financial Crisis (GFC) in 2008.