In business, access to capital at all times is crucial. Being locked out of obtaining working capital can break a company. Today, in this current economic climate, qualifying for credit from an institutional bank is tricky. There is no uniform credit culture among banks anymore, at least for the time being. Some banks are lending others are not. But in some cases securing a line of credit can become an insurmountable hurdle blocking the way of explosive growth.
A company that has been slogging along and is finally poised to double its revenue will be ill served with an insufficient line of credit. When a bank line of credit hits its limit, in most cases, that credit line has to be retired before any new funds will be available. This is happening all over the country. Companies have been caught short with their expansion plans by a lack of a sound capital strategy. Meaning that all forms of working capital should be considered, and a good game plan implemented to utilize the best sources at the right time to keep the business humming. By not planning ahead countless hours, weeks and months are wasted getting out from a line of credit that is no longer serving its purpose.