Get business financing when you can, not just when you need it

Today I received a call that is becoming an increasingly common occurrence.  A company that turned down financing six months ago because they felt that they didn't need it yet, called and said they need money by the end of the week or they would probably have to shut the doors.  This is NOT an enticing opportunity for any lender, nor is it a realistic expectation for any borrower.  The company owes a bank and various vendors, and is unable to cover payroll because their customers are taking too long to pay them.   The company had strong sales growth and money was flowing in a few months ago, but Accounts Receivable collections went from 30 days to 60 days, and at $1 million of sales per month, this created a $1 million cash shortfall very quickly, even though sales are still solid.  Their decision to forego financing six months ago when they did not feel any urgency has effectively put the future of their company in jeopardy.  
It is possible to set up a credit facility without a monthly minimum, so the company will not incur fees until they actually borrow the money.  With a funding facility preapproved, the company can receive funds within 24 hours from making the request, even if the request is not until six months after initial approval.  
I hope that business owners will learn quickly that in this tight credit market, it is better to have financing in place when they do not have the immediate need, even if it is not being used, so they have money available to them at a moment’s notice when it is needed.