PSA in entirely personal capacity: if you are a small business with a credit line and you think you may need it, you may want to draw in advance of need to maintain optionality. Some lenders are actively reducing their books due to the perception that credit quality is impaired.
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One lender, who I won’t name because this is likely much broader than them, extended my LLC a line of credit approximately 8 years ago and was trying to up sell me as late as February 20th. They just sent me notice today that they’re applying a “draw hold.”
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They have made a boatload of money on my custom, got $20 a month for keeping the line open, and charge a 30%++ APR, and even with that they’re like “Nope, odds are if he saturates the line this week that means extremely bad news for us.”
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Replying to @patio11
An insurance policy that only works when you don't need it.
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I think it’s easy to take sideswipes like that but they were willing to do the line of credit when eight banks in two countries were not, and it paid an employee when revenues wouldn’t, and allowed me to grow and sell the business. I don’t begrudge them the decision.
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