Troubled times ahead for everyone it seems. Credit markets still seems to be troubled. The Federal Reserve stands willing to provide liquidity to the markets although modestly. If I was running a pretty profitable business and I needed capital now, could I rely on my existing banking relationship to provide me the capital now?
Here is an article in the WSJ on "Prior Loans, Future Pain?" Link. This article is free, no subscription needed.
I guess the answer might be how much you need and the terms, but wouldn't you feel slighted if you had a banking relationship with your banker for lets say 10 years and you asked your banker to increase your credit line by about an additional 40% and they said no. In this scenario, with all things being equal, of good personal credit and business scores, pretty robust industry growth projections, and business debt to credit ratio of 1.20 or better. What would be the reason(s) for a bank decline? I called and left a message to a banker that I regularly deal with and I also called one of the businesses that was referenced in the WSJ article to see if I could get some feedback on this situation. I will posts their responses if and when they return my call.
Here is an article in the WSJ on "Prior Loans, Future Pain?" Link. This article is free, no subscription needed.
I guess the answer might be how much you need and the terms, but wouldn't you feel slighted if you had a banking relationship with your banker for lets say 10 years and you asked your banker to increase your credit line by about an additional 40% and they said no. In this scenario, with all things being equal, of good personal credit and business scores, pretty robust industry growth projections, and business debt to credit ratio of 1.20 or better. What would be the reason(s) for a bank decline? I called and left a message to a banker that I regularly deal with and I also called one of the businesses that was referenced in the WSJ article to see if I could get some feedback on this situation. I will posts their responses if and when they return my call.
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