Tuesday, April 21, 2009
You know those credit card checks you get in the mail? The banks don't want to take them. My bank informed me that they, and many other banks, are getting so many bounced credit card checks due to decreased credit card limits, that they treat them differently now. They send them directly to their collections department, who then processes and sits on them for 4-6 weeks. Oh yeah, and they charge $15 for this process. Forget for a moment that the rates on these are not very good; sometimes you just need a bit more cash. I was looking for a short "bridge loan" but ended up canceling the check and using my own money. Short term loans and financing continue to be a problem for small businesses, and mine is no exception.