1. Don’t panic. Get thefacts before reacting. Find out if you are facing a change in your bank’swillingness to extend credit, reflected by smaller lines of credit and/orhigher interest rates, or something else.
2. Branch out. If you arecurrently with a large bank, start making friends with your local communitybanks.
3. Educate yourself. Findout if your bank loans are affected by the mortgage crisis by checking theFDIC’s summary of deposits site. Most community banks are not impacted.
4. Stay in touch with yourbanker. Remind your banker that your business is a valuable, long-term customerthat cares about continuing the relationship.
5. Manage your cash. Don’tadd inventory you don’t need or suspect will have a hard time moving. Don’tmake capital expenditures not currently required. A clean balance sheet andfinancial prudence demonstrates vigilance to your lender.
6. Check your credit report.Correct any erroneous entries with the major credit bureaus – Equifax, Experianand TransUnion.
7. Manage accounts receivable. This is vital if they’recollateral for any loan. Make sure your lender knows that they are good assets.
– Source: Tire Review BusinessToolbox