Credit Crunch Comes Home... (Full Version)

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OttersSwim -> Credit Crunch Comes Home... (10/29/2008 1:31:52 PM)

So I own a small picture framing business in Northern Colorado.  The business is just over a year old and doing pretty well - slower and lower than my business plan projections, but still good enough to warrant continuance.

We have all heard about how the credit crunch is affecting small business. Well yesterday it hit home when my bank, Chase, canceled a home equity line of credit that was serving as a source of credit for the business.

We never missed or were late on a payment.  They just changed the rules, revalued our home and canceled our line unilaterally.

We are now in a terrible position, operating only on cash on hand.  The economy is the worst it has been in 70 years...

Our plan included using some of our retirement accounts if the business failed - those are now below the value of the debt we incurred opening the shop.

We are in the midst of a financial "perfect storm" that will very likely wipe us out.

Protect yourselves out there friends - it is rough sailing and boats are being lost...  [&o]



pahunkboy -> RE: Credit Crunch Comes Home... (10/29/2008 1:38:20 PM)

Im sorry.  Do you feel the house value came down that much?

I ask since I browse what the local market is and there are no bargains here.  tho-  a place might have value but the   buyer simply can not make the cash happen.

In light of the 'mortgage meltdown" houses should be cheap.   I am not seeing cheap.  Bank owned houses are winterized too. No utilities- as is- as is- AS IS.   who will plunk down full price for as is?   no one.  the price has to be a discount for people to buy these abandoned,locked up houses.

Anyhow- it sounds like you will have to do some planning....



SilverMark -> RE: Credit Crunch Comes Home... (10/29/2008 1:43:42 PM)

Welcome to the new reality of the economy.
As a man who owns a few retail stores I understand your plight!...it is happening to friends of mine everywhere...by no fault of your own the money stops,
the traffic in the store slows....and the worry begins. I am able to operate and make payroll etc. on the cahs flow I have at present but my worry persists and
my aprehension gows daily.
I wish you well,
M



tweedydaddy -> RE: Credit Crunch Comes Home... (10/29/2008 5:10:16 PM)

I don't know if this will help but the firm I use for framing my pictures had to take the step of approaching local colleges to offer a discount for framing diplomas in order to get bulk business. I wish you all the best, hopefully with a new broom in government some of this madness will calm down.



TreasureKY -> RE: Credit Crunch Comes Home... (10/29/2008 7:52:06 PM)

Fast Reply:

Just wait until businesses have to start paying higher taxes.  The best is yet to come.  [;)]



FirmhandKY -> RE: Credit Crunch Comes Home... (10/29/2008 7:54:30 PM)

quote:

ORIGINAL: TreasureKY

Fast Reply:

Just wait until businesses have to start paying higher taxes.  The best is yet to come.  [;)]


It's our "patriotic duty" yanno.

Firm



TreasureKY -> RE: Credit Crunch Comes Home... (10/29/2008 7:58:09 PM)

quote:

ORIGINAL: FirmhandKY

quote:

ORIGINAL: TreasureKY

Fast Reply:

Just wait until businesses have to start paying higher taxes.  The best is yet to come.  [;)]


It's our "patriotic duty" yanno.

Firm


lol... Of course it is.  But no worries... after the higher taxes and fines for not providing health care coverage for employees, we'll be poor enough to qualify for government handouts.



Sanity -> RE: Credit Crunch Comes Home... (10/29/2008 8:12:09 PM)


Only the top 5% though.


quote:

ORIGINAL: FirmhandKY

It's our "patriotic duty" yanno.

Firm




kittinSol -> RE: Credit Crunch Comes Home... (10/29/2008 8:23:49 PM)

It's kind of shitty to hijack a personal thread like that with such blatant political propaganda, no?



MzMia -> RE: Credit Crunch Comes Home... (10/29/2008 8:25:01 PM)

Thank you for sharing OttersSwim.
I hope your business is able to survive.
We are heading towards the next depression.
The financial situation is terrible, and things are getting worse daily.
 
I have been thinking about starting a thread here about how people
are surviving during these terrible times.
Again, I hope you are able to keep your business afloat.



TreasureKY -> RE: Credit Crunch Comes Home... (10/29/2008 8:28:37 PM)

quote:

ORIGINAL: Sanity


Only the top 5% though.


Uhuh... sure.  [;)]



FirmhandKY -> RE: Credit Crunch Comes Home... (10/29/2008 9:10:38 PM)

quote:

ORIGINAL: kittinSol

It's kind of shitty to hijack a personal thread like that with such blatant political propaganda, no?


kittinsol definitions:

personal thread:  a thread in which current events directly related to the politics of the day are related by the poster through a personal example.

blatant political propaganda: any political related commentary which uses that example to make a counter-political point - which kittin does not support.

hijack: to directly challenge kittinsol's political position.

Firm



OttersSwim -> RE: Credit Crunch Comes Home... (10/29/2008 9:41:30 PM)

Thanks to all of you for your thoughtful replies...even the Republican ones.  [;)]

No worries about a hijack - this is the Off Topic forum after all.

I am honestly mad as hell, but I am not giving up.  We are going to keep the business open on shoestring and bubblegum if necessary until January 1 and then do another re-examine.



FirmhandKY -> RE: Credit Crunch Comes Home... (10/29/2008 9:51:24 PM)

quote:

ORIGINAL: OttersSwim

Thanks to all of you for your thoughtful replies...even the Republican ones.  [;)]

No worries about a hijack - this is the Off Topic forum after all.

I am honestly mad as hell, but I am not giving up.  We are going to keep the business open on shoestring and bubblegum if necessary until January 1 and then do another re-examine.



I've started, sold, bought and run several businesses.

It's never easy, especially if you are under capitalized.

Good luck in your endeavors.

Firm



Lockit -> RE: Credit Crunch Comes Home... (10/29/2008 11:13:40 PM)

Otter, I really feel for you and anyone else in small business right now.  I had a business until 911... not too far from where you are at and most of us lost our tail ends.  I was one of the first to get out because when business slows and you have all that overhead... it eats everything up and pretty soon you are paying to be in business.  I got out, sold my stock slowly but from my garage and didn't go into more debt, but others... they went under hard. 

Remember the indoor and outdoor swap meet they built that is now an RV business?  We almost got into that place along with the other two shops... Some towards Ft. Collins are still open... could you do business from there, it would be cheaper if you have to move things.

I hope everything works out for you!



OttersSwim -> RE: Credit Crunch Comes Home... (10/30/2008 4:29:26 AM)

Lockit:  Heh, we went by that place a few times and saw some of the vendors in that RV place.  They seemed so sad and hungry as we were like the only ones there.

I am going to inform my landlord tomorrow of this occurrence and ask for an extended grace period, and a lower rent due to the circumstances.  As of today, cash is king and I am going to start more aggressively pursuing full payment rather than just a 50% deposit on orders.  I am also going to extend my hours to 6 days a week to try to catch more business.  It's game on and I am not giving up until and unless they lock me out of the building!



kittinSol -> RE: Credit Crunch Comes Home... (10/30/2008 5:16:56 AM)

quote:

ORIGINAL: FirmhandKY
<snip snip snip>s


It's like this: a poster makes a genuine heartfelt thread about his real concerns for his small business, and a big shark and his girlfriend jump right in there stating ridiculous McCain/Palin talking points: not pretty [8D] .



Aileen1968 -> RE: Credit Crunch Comes Home... (10/30/2008 5:24:08 AM)

Next thing you know, someone will probably mention that he should get a gun or something.  [8|]



meatcleaver -> RE: Credit Crunch Comes Home... (10/30/2008 5:26:05 AM)

quote:

ORIGINAL: TreasureKY

quote:

ORIGINAL: FirmhandKY

quote:

ORIGINAL: TreasureKY

Fast Reply:

Just wait until businesses have to start paying higher taxes.  The best is yet to come.  [;)]


It's our "patriotic duty" yanno.

Firm


lol... Of course it is.  But no worries... after the higher taxes and fines for not providing health care coverage for employees, we'll be poor enough to qualify for government handouts.



You never know, by paying taxes you might be rich like the Germans.



FirmhandKY -> RE: Credit Crunch Comes Home... (10/30/2008 5:35:56 AM)

quote:

ORIGINAL: kittinSol

quote:

ORIGINAL: FirmhandKY
<snip snip snip>s


It's like this: a poster makes a genuine heartfelt thread about his real concerns for his small business, and a big shark and his girlfriend jump right in there stating ridiculous McCain/Palin talking points: not pretty [8D] .



Typical.

You only support "free speech" when it supports your political objective.

Sweet.

Firm



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