I'm a small limousine service operator with a 15 years old account with my bank and 5 paid off loans for a total of over $200k in the past 12 years.

Currently I have a 50k line of credit wit about 11k available to use but my bank freeze it.

I have Auto payment deduction from my checking account and never been late.

Now, times are hard and I really need to get my credit of line open to me again. My question is how do I approach my bank? I don't want to make the wrong move.

Thank you all for your help.

Rickdo

They are all doing it.
Freezing lines of credit.

That is actually responsible action on the part of the lenders. The HELOCs that are still on the books need to be re-underwritten.

You can either reapply with your current lender or simply go to another bank.

People should not use the equity in their home as an ATM.
I'm not saying a Home Equity Line of Credit is bad.
It depends on what someone does with the money.

If someone is going on vacation, buying a boat, a new sports car, getting a new set of boobs, investing in the stock market or some other useless and ridiculous purchase... that isn't a good use of your homes equity.

If you are buying other investment property or making capital improvements to your home that DON'T exceed what the neighborhood and market would return then those are reasonable uses of home equity.

Even business expansion when it's known money will be made from the expansion. Home equity loans to start a new business in which one is unfamilar is the fast track to bankruptcy.

My 3 cents.

__________________
Gary Spicuzza, *SAFE
Copyright 1956.
No Rights Reserved.
*Self Appointed Financial Expert

This type of arbitrary cutting off at the knees without warning or notice is happening to thousands of small businesses throughout the United States. In fact every single business borrower that had a relationship with Washington Mutual has recently been cut off by the new owners, namely JP Morgan Chase. All of those businesses who depended on their credit lines now face great new challenges if not the ultimate loss, going out of business.

My advice is to run, don't walk to another lending institution and see if you can structure a credit line with them for your business operations.

You can try going for a Merchant Cash Advance.

I just spoke to our bank yesterday and they said this is a problem they say will continue. Expect to see this problem grow among banks.





Mark

I would find out why they froze your account. This seems odd since most lenders just drop your available credit down to the amount you owe.



Curtis

Collection agency

You obviously do not know much.

Wow real informative

Good thing your only here for the spam of your crappy website.