Every Good Business Needs a Back Up Plan – Establish a Line of Credit

We hear about it every day. It’s on television; it’s in the newspapers; it’s in the magazines we read. A Credit Crunch is enveloping our economy. Credit Crunch Moves Beyond Mortgages, Individuals See Higher Rates, Harsher Terms (Wall Street Journal, Aug 22, 2007); Credit Crunch Strangling Small Business? Entrepreneurs …may no longer be able to get funding (CNNMoney, Aug 30, 2007).

No matter how well you run your business, regardless of the previous relationship you have established with your bank, the time may come when you need cash fast and your traditional sources of funding are no longer available. That is why every business needs a back up plan. Smart business people across the nation are establishing lines of credit well before the need arises…just in case. Many are also looking at alternative sources of funding because their traditional sources are tightening their credit standards, raising their rates and in many cases, denying previously extended credit.

Take the case of Doug Eddings, a 35 year old small business owner in Portland, Oregon. Three of his previously reliable financing sources “all took steps in recent weeks to tighten his credit, either by raising his interest rate, halving his available credit or freezing his accounts.” Credit Crunch Moves Beyond Mortgages (WSJ, Aug 22, 2007). According to Mr. Eddings, when he called to inquire, “they didn’t have an answer for [him], but said it was something in [his] credit file.”

Don’t let the Credit Crunch catch you flat footed. Consider putting a line of credit in place today before the need arises. Business loan providers such as Advance Restaurant Finance, LLC who specialize in the restaurant industry, provide lines of credit to restaurateurs every day, with no application, maintenance, or access fees. Why wait? Establish a line of credit today.

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