Cashflow based lending
October 8th, 2009
I am in the process of redoing one of our lines of credits and the properties that are collateral are perfoming better than they ever have yet the banker wants to cut back thew size of the loc significatly. When I inquire as to why. The banker says they are moving away from asset based lending which was the norm in the past. He further stated they are now relying on cashflow based lending. So if you are an investor forget raising capital from banks. It is now up to you to get it from operations. You can do this by either spending less money or raising rents
