Do I wait for the bank to call?

Dear Aunty B,

I am sitting here feeling like the carpet is about to be swept from under my feet. I run a wholesale business and have a large debt facility that is secured against my home. I drew down on it in order to expand my facilities and now I am waiting for a knock on the door from my bank as judging from property sales in my area, the value of my home has fallen. I have no idea what to do as I thought we were out of the GFC and was going for it after sitting on my hands for three years.

Do I wait for the call? I can’t reduce my bank facility as I don’t have the money. I have a good business and can’t believe I will lose everything because of property prices. Do I wait? Waiting feels worse but the alternative feels even more worse.

AF,
Victoria

Dear AF,

You are an entrepreneur. So what that means is you face facts and you act decisively. That means you go and see your bank immediately. Once you have the facts you sit down with your advisors, mentors and board and work out a plan.

You know, there is one thing I have learnt as an entrepreneur. Most of the time it is not as bad as you fear. Well yes, occasionally it is a lot worse than you think but even then it ends up okay. What I do know for sure is sticking your head in the sand and your bum in the air will just get you a cold bum and a sore head. Especially in a Melbourne winter. Off you go!

Be smart,
Your Aunty B

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