This week I went though the proctology exam that is renewing my bank credit line. I really liked the opening exchange where he said that we “lost some money” this year. How could this happen with such a blustery economy? The basic premise of the discussion centered on the bank “wanting more collateral” to renew the line.
In plain English: We do not have any faith in your business model, and we got a pile of cheap cash from Uncle Sam that we are going to dole out with an eyedropper.
Seriously, if you need a loan today you better have a paid off piece of real estate, stocks etc. or you are screwed. Long gone are the days of a personal relationship with your banker. He was always the first guy/gal to leave the Frat party after the beer ran out anyway. So fellow small business owners, the so-called engine of our economy, get a realistic budget and ride the storm out. You will be doing it alone. But please have a long memory when we turn this economy around.
