Entrepreneur Plus - Short White
For Subscribers

Bounce Back Being dropped by your lender may feel like a huge setback, but your business is far from over. Here's how to rise above it.

By Crystal Detamore-Rodman

Opinions expressed by Entrepreneur contributors are their own.

When Tara Olson learned that her bank wasn't going to renew her business credit line, she felt like the rug had been pulled out from under her marketing research firm, AllPoints Research Inc., in Winston-Salem, North Carolina. And for good reason: Without the line of credit, the $2.5 million company would have difficulty making payroll and paying vendors, unless Olson and co-owner Sherrie Aycock tapped into their personal resources.

"[We] have situations where we'll be working on a project that is worth maybe a couple hundred thousand dollars, but that client, because of their payment policy, is going to pay in two installments and it's going to take them 60 days to process the first invoice," says Olson, 44. "During that time period, we've already started the project. We're spending money. And on something of that size, we need a line of credit to help us cover those expenses while we're waiting for the collection to come in."

Memorial Day Sale - Save 20%! Unlock this premium article & so much more with Entrepreneur+

Join the internet’s leading entrepreneur community with our Memorial Day sale! With your subscription, you'll get:

  • Digestible insight on how to be a better entrepreneur and leader
  • Lessons for starting and growing a business from our expert network of CEOs and founders
  • Meaningful content to help you make sharper decisions
  • Business and life hacks to help you stay ahead of the curve

Use code SAVE20 at checkout.

Editor's Pick

A Leader's Most Powerful Tool Is Executive Capital. Here's What It Is — and How to Earn It.
Lock
One Man's Casual Side Hustle Became an International Phenomenon — And It's on Track to See $15 Million in Revenue This Year
Lock
3 Reasons to Keep Posting on LinkedIn, Even If Nobody Is Engaging With You
Why a Strong Chief Financial Officer Is Crucial for Your Franchise — and What to Look for When Hiring One

Related Topics

Business News

7 of the 10 Most Expensive Cities to Live in the U.S. Are in One State

A new report by U.S. News found that San Diego is the most expensive city to live in for 2023-2024, followed by Los Angeles. New York City didn't even rank in the top 10.

Business News

More Americans Are Retiring Abroad, Without a Massive Nest Egg — Here's How They Made the Leap

About 450,000 people received their social security benefits outside the U.S. at the end of 2021, up from 307,000 in 2008, according to the Social Security Administration.

Starting a Business

I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.

Only 0.00006% of businesses will achieve unicorn status. It's not impossible, but extremely challenging, to say the least.

Marketing

How to Protect Your Reputation by Managing Online Reviews

As reputation management professionals, law firms and legal professionals face unique challenges in the online reputation space. Overcoming those challenges requires a unique online approach.

Business News

San Francisco Launches $6 Million Ad-Campaign to Lure Tourists Amid Retail Exodus and Drug Crisis

The ad campaign includes the city's first-ever television commercial.