Take Your Credit Line

This may seem like a finance focused blog but this is important for all business owners. We are now in the worst financial climate since the great depression and there is a massive credit crunch. This means that more than ever, “Cash is King.”  Whether you own an Internet Marketing Business, a Pharmaceutical company, A restaurant, a pet store, or any kind of business in the world, you need to make sure that your business has enough cash to get through this tough economic climate. The best way to make sure of this is to take out your entire credit line. Many business owners that I know have a large credit line $50,000 to $5 million and most of them have not taken a penny from it. If you have a good relationship with your bank, go there today and find out what your credit line is or apply for one. the window for getting a new credit line is closing, so go there quickly.  Here is the example I want to use. If your company has a credit line of $250,000, take the entire amount out of the bank and put it into a short term CD earning around 4.25% which you can get with any online back. At the most if you have good credit you will be paying about 5.25% on the credit line. That is a 1% cost of business insurance. Store the cash away. You may need it for new employees, payroll, business equipment, Internet marketing, and more. you never know when you will need the cash, but I guarantee you that the 1% will not effect your bussines sin the short term. Draw the entire credit line now because many banks are starting to freeze these credit lines. As an Internet Marketing company, we are seeing many businesses draw out their credit lines and use some of the money on Internet marketing, while dropping their print advertising to bring in new business and in most cases that is working very well.  Take all the cash you can and take it now.

-Brandon

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