"Have they thought of a backup credit
system, like the swipe?
programme on May 17, without requesting backup credit
from its international lenders.
Dublin opted to make a clean break from the 85 billion euro bailout last week but noting the fragile external environment, the council said a backup credit
line would have provided valuable added protection against any fresh funding pressures.
Bank lines of credit are commonly used by business customers for backup credit
. Businesses that regularly fund themselves in the commercial paper market, for example, often have bank credit lines as backup sources of funding as a hedge against a disruption in their ability to borrow in the commercial paper market.
According to MarketWatch, S&P said it might downgrade Gannett because of declining newspaper ad revenue: "Even though we are placing the company's 'A-2' commercial paper rating on CreditWatch pending the outcome of our review, we are not currently concerned about Gannett's short-term liquidity position given its substantial backup credit
By combining early due diligence with close attention to aging receivables and using strategies like keeping backup credit
card numbers on file, small-business owners can get a handle on their account receivables and keep their bottom lines healthy, even when customers are dealing with their own economic challenges.
As a result, companies are consolidating all of their business in one or two banks, are working with their bankers to make the arrangement profitable and are searching for backup credit
sources in case the bank says "adios."
Barclays emerged as one of the top banks involved in a pounds 138 million backup credit
line for the firm arranged by Chicago-based Bank One in October.
In Pakistan this purpose is served by a pretty well managed system of commercial and investment banks, DFIs, Leasing Companies, Modarabas and Mutual Funds which are all vital parts of the financial framework for several reasons like their involvement, particularly that of the banks with the day to day operations of the country's payments and settlements and as providers of a backup credit
"In addition, Moody's will review the potential for asset impairment charges to erode the company's cushion within the $3.5 billion minimum shareholders' equity covenant in its backup credit
facilities," the ratings service said.