Businesses and banking institutions generally work hand in hand. Businesses need banks to fund their endeavors; banks need companies to drive their loan and commercial accounts business. At times though, the relationship between the business and the bank falters, and there is disagreement regarding issues such as lines of credit. A Florida businessman recently won a business litigation decision when his banking institution attempted to foreclose on his credit line.
This businessman had a twenty-five year relationship with his banking institution. In 2011, he owed approximately $3.1 million to this particular bank. He was not behind on payments, and he had recently added more collateral as additional security on the credit line.
Regardless, his bank decided it was in their best interest to file for foreclosure and receive payment on the credit line. The Florida gentleman decided that fighting this process in court was in his best interest. As a result, he agreed to pay a portion of the credit line which he received from another lending institution. Additionally, his credit report would not show any negative information in regard to this account.
Although the business this gentleman owns is in a declining market, he has proven successful with it. Credit lines and banking relationships are an important part of the business environment. Without a working relationship with a financial institution, many businesses would needlessly struggle. Like this Florida businessman, businesses that find themselves in contention over a credit line or other issue with their financial institution may want to investigate their business litigation options.
Source: insiderealestate.heraldtribune.com, Piano distributor comes out ahead in foreclosure suit, Michael Braga, Dec. 30, 2013