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.