Line Of Credit

Be fair, attentive, and customers
will return.

First, don't panic. Make an appointment
to talk to the person, institution, you
obtained the loan from.

It's possible your line of credit will
not be reduced or taken. Give
yourself piece of mind by contacting
the loan institution.

The credit trouble, in the news, is
pointing to short-term loans big
companies make to one another,
and the rate they pay to borrow
from each other.

If, for some reason, your line
of credit is reduced, taken, make
sure you're not dependent on
one bank, or one credit card.

It's best to have several lines
of credit from various banks.
This, at least, gives you a
better chance at survival.

It's possible your regular
banking institution may
reduce, take back, your
line of credit. If it happens to
you, think outside the box.

Don't let your dream, business,
fade away.

An alternative is to barter with
suppliers. Trade products or
services for supplies. Put the
terms of the bartering agreement
in writing. A written document
spelling out the agreement avoids
future misunderstandings. It will
save relationships, friendships.

Have an informal party for friends
and family. Explain what you're
during with a product or service.
Ask for investors.

In return, one investor asks
that you train his/her son or
daughter in a particular area.
Or, point to the fact that
he/she will get a return on
investing with you, and that's
better than taking a chance
on investing in the market.

When your line of credit is
taken or reduced, cut back on
spending. Out-dated, pass its
usefulness, equipment must be
removed. Employees not making
the quota should be moved to
another area, or terminated.

If John, for example, isn't
doing well in customer service,
move him to shipping.

John is a problem in shipping too.
You have no choice, but to remove
him to the door.

Still, there are businesses doing
well. Even so, be mindful of how
your line of credit is used.

No one knows which bank, lending
institution, will reduce a line
of credit, or take it back.

In closing, always contact your
loan officer with concerns about
your line of credit. Make it a
practice to have credit lines
from different institutions. It
keeps you afloat if one bank goes
under.

Bartering is a way to meet the
economic down-turn.

Rid yourself, your company, of
equipment or people missing the
mark, and stop all unnecessary
spending.

The Bail-Out

Be fair, attentive, and customers
will return.

No one wants to turn-over
hard earned money to help Wall
Street. It's annoying, and
angers many.

"Would my business be
bailed-out if it failed?" A
few asked.

I doubt that the government
would rush in to aid your
failing small business. There
is a process by which you'd apply
for a loan, aid.

In fairness, the failure of a
lone business wouldn't negatively
impact the financial system.
Or, the affects wouldn't knot
our cash flow.

The bailout is necessary
to allow you an opportunity to
borrow funds. The bailout stops
Wall Street's problem(s) from
reaching your street and mine.

In a stable economy, it's
easier to get credit, and keep
the amount, terms, originally
assigned.

Some small business owners
have complained that their
credit line was reduced, terms
changed.

The bailout gives some
opportunities back. You can
save for retirement without
worrying if the bank will close.

America's children, with the
bailout, have a better chance
of getting needed funds for
college.

People agree that a bailout
plan is necessary, but haggle
over specific points.

For the small business owner,
cut-back where you can. Phrase-
out free morning donuts and
coffee. Cut cost anywhere,
everywhere, possible.

Maximize the use of employees
and equipment. If, for example,
a department isn't using Employee
E, send him/her to the next area.

The positive effects of the new
bailout plan takes time to see,
and feel.