Preserve_Your_Access_to

Preserve your Access to Credit: Preparing for a Possible Bankruptcy by your Lender

By Joel R. Glucksman

The media have recently been reporting on the potential for bankruptcy filings or government seizures for various lenders around the United States. If any occur, businesses who finance through them need to be prepared. Such businesses are well advised to arrange access to alternative credit sources, so that they are not left in a cash flow crisis should their existing lender prove unable or unwilling to continue financing.

Of greatest concern is that lenders with millions of customers – many of whom are small and medium-sized businesses – might have to slash their borrowers’ access to credit should these lenders tumble into insolvency. Small to medium-sized businesses depend on their lenders for financing and are frequently unable to access alternative financing sources, especially on an emergency basis.

Businesses with questions about how their access to credit might be impacted are urged to contact the Scarinci Hollenbeck attorney with whom they work. Questions can also be directed to Joel Glucksman.

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Peter S. Moeller

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Joel R. Glucksman

Bankruptcy and Creditors Rights