Looking For A Line Of Credit?

Banking standards for commercial businesses seem to be tightening, at least that is the word I'm hearing from many business owners. In fact, some banks are starting to call business owners' lines of credit.

This makes sense. Some of these lines were secured through real estate, which is taking a pounding. When the real estate isn't as valuable, bankers get nervous and start pulling the lines.

I'm hearing from more and more experienced owners that every business should seek out a line of credit. I personally have never approached a banker about a line, although I am thinking about it. The best time to approach a bank is when times are good. If your company's finances are in good shape, now may be the time to seek a line of credit. Even if you don't need it now, it is a great way to kick-off a long relationship with a bank. If you need a larger line later to expand, it will certainly help.
--Ron Ameln, SBM