What to do in the event of possible job loss?

linux007969 · ‎01-25-2015

It seems like the nonprofit i have been with since 2005 as a volunteer and became employed with in 2008 is on the verge of shutting its doors. My boss is 3 weeks behind in pay, i'm 2 weeks behind in pay, and on friday they laid off a guy who works under me but said he can still come in as a voluteer if he wants to...... anyway......

I have known that this day may come as there have been signs of it for a little while recently so i started to build some business credit so i can take my side business to the next level and form a real company out of it........

So i am wondering if i should maybe look into a personal line of credit with my bank PNC or another bank while i still have a job that way i have funds to pay my credit cards (about $3.5k total) and my auto loan (about $17.2k left) and have access to funds for working capital to lanuch my side business into a company?

my other thought is that if i get a personal line of credit would this make me look like i'm in trouble when the banks do their account reviews?

I do know that as long as Bank of America keeps my cash rewards card open i have access to checks to write to myself as they are always sending them and i've used them a few times to make things easier when things get rough and also to avoid high interest on other credit cards, but my credit limit on that is only 5k and i don't want to write a check out for more than 3k because i don't want them to think i'm a risk.

If i get a personal line of credit i would be looking at $35k as that would put $20k for working capital and the $15k to keep my bills paid for a while.

I'm well aware of opening a can of worms with this post but please be gentle with me i don't want to see a whole lot of negitive posts please!

Rebuilding Credit since 2016
Debt: Almost $80,000

SCF · ‎01-25-2015

Do you have any emergency fund savings that can be used to cover your bare minimum personal expenses while you ramp up your business? If not, it is probably time to start looking for at least a part-time job to help you bridge that gap. You state that you've been working on your business credit, so I would have the business borrow whatever amount it needs/can support on its own to provide capital for your ramp up.

A $35K line of credit is going to be a tall order, even with a solid credit score. That's a lot of money to ask for unsecured. Your business may be able to borrow more easily because there are loans out there specifically for business development, and your application can be reinforced with your business plan, past success, etc. Personally, I would keep the business and personal borrowing as separate as you can, and focus on borrowing the bare minimum to get you through this.

Anonymous · ‎01-29-2015

@linux007969 wrote:
It seems like the nonprofit i have been with since 2005 as a volunteer and became employed with in 2008 is on the verge of shutting its doors. My boss is 3 weeks behind in pay, i'm 2 weeks behind in pay, and on friday they laid off a guy who works under me but said he can still come in as a voluteer if he wants to...... anyway......

I have known that this day may come as there have been signs of it for a little while recently so i started to build some business credit so i can take my side business to the next level and form a real company out of it........

So i am wondering if i should maybe look into a personal line of credit with my bank PNC or another bank while i still have a job that way i have funds to pay my credit cards (about $3.5k total) and my auto loan (about $17.2k left) and have access to funds for working capital to lanuch my side business into a company?

my other thought is that if i get a personal line of credit would this make me look like i'm in trouble when the banks do their account reviews?

I do know that as long as Bank of America keeps my cash rewards card open i have access to checks to write to myself as they are always sending them and i've used them a few times to make things easier when things get rough and also to avoid high interest on other credit cards, but my credit limit on that is only 5k and i don't want to write a check out for more than 3k because i don't want them to think i'm a risk.

If i get a personal line of credit i would be looking at $35k as that would put $20k for working capital and the $15k to keep my bills paid for a while.

I'm well aware of opening a can of worms with this post but please be gentle with me i don't want to see a whole lot of negitive posts please!

I've been into the same situation as you back in late 1980s. I own my business and I was close to lose all I had. What I suggest you is my own thought for your references.

1. If you believe you can get a job and pay check come back in 1-3 month, then you have nothing to worry about. Just make minimal payment on your loans and CCs. After you get a job, save up and pay them off.

2. If you think you are screwed for lets say next 12 month, i suggest you to get a pre-approval on personal loan for emergency. Do yourself a favor, do some homework and find the best rate around. And look for jobs meanwhile

3. If you think you could be unemployed indefinitely, prepare for the worst. If you own a house, get yourself a home equity line for emergency. Get personal loan for subemergency use, sell your car and payoff the loan and CC debts. Then live the most economic lifestyle that you can bear.

Hope you find a job next day!!! Good Luck!

Anonymous · ‎01-30-2015

@Anonymous wrote:
@linux007969 wrote:
It seems like the nonprofit i have been with since 2005 as a volunteer and became employed with in 2008 is on the verge of shutting its doors. My boss is 3 weeks behind in pay, i'm 2 weeks behind in pay, and on friday they laid off a guy who works under me but said he can still come in as a voluteer if he wants to...... anyway......

I have known that this day may come as there have been signs of it for a little while recently so i started to build some business credit so i can take my side business to the next level and form a real company out of it........

So i am wondering if i should maybe look into a personal line of credit with my bank PNC or another bank while i still have a job that way i have funds to pay my credit cards (about $3.5k total) and my auto loan (about $17.2k left) and have access to funds for working capital to lanuch my side business into a company?

my other thought is that if i get a personal line of credit would this make me look like i'm in trouble when the banks do their account reviews?

I do know that as long as Bank of America keeps my cash rewards card open i have access to checks to write to myself as they are always sending them and i've used them a few times to make things easier when things get rough and also to avoid high interest on other credit cards, but my credit limit on that is only 5k and i don't want to write a check out for more than 3k because i don't want them to think i'm a risk.

If i get a personal line of credit i would be looking at $35k as that would put $20k for working capital and the $15k to keep my bills paid for a while.

I'm well aware of opening a can of worms with this post but please be gentle with me i don't want to see a whole lot of negitive posts please!
I've been into the same situation as you back in late 1980s. I own my business and I was close to lose all I had. What I suggest you is my own thought for your references.
1. If you believe you can get a job and pay check come back in 1-3 month, then you have nothing to worry about. Just make minimal payment on your loans and CCs. After you get a job, save up and pay them off.
2. If you think you are screwed for lets say next 12 month, i suggest you to get a pre-approval on personal loan for emergency. Do yourself a favor, do some homework and find the best rate around. And look for jobs meanwhile
3. If you think you could be unemployed indefinitely, prepare for the worst. If you own a house, get yourself a home equity line for emergency. Get personal loan for subemergency use, sell your car and payoff the loan and CC debts. Then live the most economic lifestyle that you can bear.
Hope you find a job next day!!! Good Luck!

@this is a great suggestion by @Anonymous. All the best.

Anonymous · ‎02-04-2015

I have been a freelance web designer for 6+ years and am always looking for my next gig.feast or famine. If you really need a job I would say take what ever job you can get. It's not worth getting into debt waiting for the perfect job, because it probably won't happen that way. Contact recruiting agency's. Make 10 contacts every single day.