What does it mean when the owner of the company says “our credit line has run out”?

Question

She said now they’re having things appraised. Is this a bad sign?

In: Other

Answer 1

It’s not great, champ. They’re unable to borrow any more money and are looking to get their assets valued in order to presumably sell them or use them as collateral to get more loans.

If you work there, you should be leaving