Commercial Collections Blog

When a Creditor won’t Renew a Line of Credit

When any creditor chooses not to renew a debtor’s credit line —  other creditors should  become proactive and try to find out why.

Below are two suggestions to help determine the underlying reason.

1.  Pull a trade report on the debtor to find out if payment habits have changed.

2.  Request an updated financial statement from the debtor. If the debtor does not have a current statement, request one.

Note: If they are a public company, you can get the most recent updated financials from the internet.

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