I need a bailout.

[dusred]

Me and my Father recently got together and decided to go ahead with an internet wheel/tire business.

We started out with a $30,000 line of credit from Bank Of America and we had an unlimited American Express 30 day account as well as several other high $ amount credit cards available for us.

We started out and all was going great. I was able to hire a few employees cause we were so busy.

Well, the economy started going to heck and I had to extend to Las Vegas (100 miles away) and Phoenix (350 miles away) to keep busy. So, I laid off 2 of my workers and kept one part time and went for a part time job myself. We were still surviving ok and making enough to make it worth it still and what do you know? I went to make a large inventory purchase and my AMEX declines. WTF? So I called them and they put a $1200 cap on our Account. I was doing around 15-20K per month with them and never had a late payment whatsoever. So we had to cough up $10,000 and pay it off which really kicked our asses because we couldn't charge it back up.

So to get by we switched and racked our $30,000 line of credit clear to the limit as well as a few large credit cards. We were just getting back onto our feet being able to pay the interest on our loans and enough to make a few payments on the loan and Bank Of America sends us a letter saying that they are closing our account with them and our interest on the line of credit will be 30% until we pay it off.

Next, we have a card With CITI bank with a $7,000 limit and they chop the limit on it back to $1500 leaving us with very few options to continue to function.

So, why can't I petition Congress for a Bailout? I only need about $50,000 to do it. That's pocket change compared to what GM, Ford, AMEX, and all the other guys are getting.

It feels to me like the big boys are trying to kill our economy.

AMEX floor's me more then any of the other guys. Making the statement that "Consumer spending has gone down" so they are in big trouble. The reason consumer spending has gone down is because they cut the limits on all their customers. I cold relate a dozen people that I know personally that AMEX has chopped limits on their cards with no apparent reason.

This is one screwed up world

/rant

[Cold_Zero]

I hear you brother. Welcome to the Liquidity Crisis. We were not exposed to SubPrime Mortgages, but the Liquidity Crisis hammered us hard. The only thing working for us was not that we were 'Too Big to Fail' but we were 'Too Important to Fail' so Congress cut us a little know bailout program. They buy our loans (par), give us a fee for the loan and we go out and make new loans. But a bit of advice. Just because we are being bailed out doesn't mean that everything is rosy. Our company has had to cut way back to be 'leaner and meaner' to survive in this market. I have seen my benefits cut, our stock price is in the single digits and I go into work everyday with the thought that today could be my last day. I know this probably doesn't make you feel good and its really not designed to make you feel better. Just know that everyone is suffering due to this mess.

[dusred]

I'm sure We'll live through it. We're just cutting inventory back to $10,000 and renting out the other half of the shop for now.

Cold Zero,

What kind of business are you in?

[Cold_Zero]

I hope things get better for you guys.

I am in the Student Loan industry.

[smockers83]

Check out the options available under the new program the Fed is coming out with in which they will take the place of the banks and credit card companies and directly loaning out to the people.

[HashiriyaS14]

I'm amazed that you were able to be successful with a business of that type considering how many big players there are out there. You have my awe.

Anyway, it's too bad that I'm not allowed to personally funnel my tax dollars as "angel equity" into your venture, as if I could, I'd surely do so, once I'd seen the particulars (of course).

Sucks how this whole situation seems to be punishing good operators while rewarding bad ones. I have a couple of stellar-performing commercial properties with low LTV's that can't get loan extensions, same syndrome.

Maybe try and call the creditors and work up a higher credit limit? That's what we're doing on our loans. Most of these crackdowns are widespread phenomena wherein the creditor or lendor is just issuing a blanket statement and figuring that they'll just exempt the good performers later. Make yourself heard, see if you can't get your high credit limit back.

Remember, all the bad performers out there ultimately just make GOOD performers all the more precious. They'd be fools to lose your business.

[dusred]

Oh, we didn't just give up.

My Dad (the business president) just sent Bank Of America a pretty firm letter telling them how he feels about what they did. I'll get it from him and post it up here.

It takes alot of work keeping the guys busy. I used to be able to keep busy just out of our Local St. George shops but I've extended all over the Western US to keep busy. I've been doing business in California, Las Vegas, Phoenix, and soon Denver Colorado.

I like the challenge. I just always have a backup plan if something fails. My Dad has been screwed on so many businesses I think he's finally learned how to succeed in a business. He's the brains behind it all really, I'm just a little guy on the side.

[Cold_Zero]

Make sure he mentions where he is taking his business, when corresponding with BoA. Bankers and Retailers typically hate when you tell them where you are taking your business, when you leave them.