An entrepreneur chugs along doing everything right in their business. One day they receive a communication from their bank and discover that their line of credit facility is being reduced or eliminated. These are viable business with no history of negative credit incidents. The banks because of their own malfeasance are suddenly thrusting viable ongoing concerns into the abyss. The banks are reducing their credit exposure because of the huge loans losses they have endured. The credit crunch is real.
I personally abhor debt, however an ongoing concern needs to insure stability in their operations. If you have an existing credit facility, I strongly urge you to fully draw upon it before the facility is reduced or eliminated.
You do not want to ask the question, ”What do you mean I have no credit line?”
