Line Of Credit amidst COVID19



Line Of Credit amidst COVID19

For the last 15 years we’ve been here for small to mid-size businesses.  Considering the current economic state, we are once again ready to assist anyone in need of some customized business funding solutions from unsecured working capital, revolving line of credit, and equipment financing.

I know it’s hard to think about borrowing during an economic slow-down, but sometimes it’s necessary for survival before the restrictions get tighter and it’s too late.

Sometimes the old cliché says it all…

Better to have it and not need it, than need it and not have it.”

 I’ve always said that the Line-of-Credit (LOC) is LIFO (Last In, First Out product) in a booming economy, but the first to get cut during bust.  Once banks start cutting, they usually start with HELOC and business credit lines. If LOC is maxed out, banks turn them to a business term-loan, or simply recall and demand immediate payments. If it involves assets, banks could force liquidation or involuntary bankruptcy.


Just like consumers, businesses also have depended on business credit cards and personal credit cards. Lenders will slash these lines sooner or later especially with missed payments.

Obtaining additional capital for business and personal will be tight across the board especially with certain industries and regions. Some will have a bigger impact than others before it gets better.


What is your current situation right now?
Are you in a Survival mode? Sustenance mode? Or, maybe you’re still in Growth mode?


Here are 8 business tips on how to preempt yourself when dealing with an economic slow-down:


  1. Preserve cash
  2. Start cutting cost
  3. Preserve business and personal credits – stay current
  4. Preserve banking/lending relationship
  5. Notify your creditors/vendors early of any payment interruptions
  6. Speak with your landlord for rent deferments
  7. Offer early payment discounts on account receivables
  8. Find good bargain for your business essentials


In conclusion, no matter what you do, it must be for you and your business’ best interest. You know your business more than anyone so making a business decision whether to borrow now, later or not at all is all for you to decide. Do what makes best sense to you. We are here to facilitate any decision you make when it comes to your business financial well-being. Just know that your success is our success. We wish you all the best during these trying times. Let’s keep America strong!

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