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It's not uncommon for businesses to have overdrafts in place of or additional to loans for cashflow. The bank calls in the overdraft because of the bank's bott
by anexprogrammer 10y ago
It's not uncommon for businesses to have overdrafts in place of or additional to loans for cashflow.
The bank calls in the overdraft because of the bank's bottom line, rather than for anything related to the business itself or change in profitability. Was quite common in both the 08 and 91 recessions.
- amorphid 10y agoDepending on a line of credit to fund your business' operations definitely makes you the bank's biyotch. I remember Zappos being encourages/forced to sell for the same reason [1]. Their outcome had a happier ending, but they still had to sell. [1] http://www.inc.com/magazine/20100601/why-i-sold-zappos.html http://www.inc.com/magazine/20100601/why-i-sold-zappos.html