Urgent – banks are scamming business owners!

SnowPrincess

I have been working in the banking industry now for many years and getting a business loan is nothing more than a popularity contest. Basically without going into great detail, the more popular your business is the more likely you will get a business loan.


What’s crazy is that in addition to that they not only want your company to be in business at least 3 years, but they want a personal guarantee! They want their sticky fingers on everything you own, will own or want to own including the shirt of your back.



I mean sure, they will tell you that’s not necessary if you have 5x the assets to back up the loan amount you want to borrow but who has that today when you need the money to get those assets in the first place. Crazy huh?...


to be continued in the next post... :beer:

[Deleted User]

Ok....


Not really a scam, though, is it?

The_pc_tech

by popular surely you mean that you have to have a high rate of turnover or do you literally have to walk in there with a customer list or are you saying it depends on how you look to the male/female bank employee making the decision?

If it's the former than I guess I can understand a bit but surely either of the latter scenarios are rather unfair at best and illegal at worst if it can be proved of course.

gb12345

As ZX81 says, no scam evident.

If you have really been "working in the banking industry now for many years" then you would know that banks are businesses not charities.

They protect their assets by lending to the borrowers that they are more likely to get the money back from. The "popularity" as you put it is called assessing the risk and the personal guarantees are perfectly reasonable if the business can't justify the borrowing off its own back. It also gives the business owner more reason to suceed as he can't just borrow a fortune and then walk away from the business.

Far from being a bank employee, I would guess you are more likely to be a "business person" who has failed to get a loan because they couldn't justify the borrowing.

dealer_wins

SnowPrincess wrote: »

I have been working in the banking industry now for many years and getting a business loan is nothing more than a popularity contest. Basically without going into great detail, the more popular your business is the more likely you will get a business loan.


What’s crazy is that in addition to that they not only want your company to be in business at least 3 years, but they want a personal guarantee! They want their sticky fingers on everything you own, will own or want to own including the shirt of your back.



I mean sure, they will tell you that’s not necessary if you have 5x the assets to back up the loan amount you want to borrow but who has that today when you need the money to get those assets in the first place. Crazy huh?...


to be continued in the next post... :beer:

Please dont bother, unless you have got something intelligent to say.

DCFC79

dealer_wins wrote: »

Please dont bother, unless you have got something intelligent to say.

Don't say that lol, it could be really interesting what the OP will post with next, I'm getting the popcorn so anyone getting the drinks.

whatyadoinsucka

the problem for banks is finding good companies to lend to..
my brothers works in a smal--medium size business loans dept and he just laughs at what the government of the day say about encouraging lending..
He's seen a sharp rise of businessmen trying to get loans to in effect mitigate there own risk by reducing equity

would you lend £20 to your mate who's got a poor credit history and has refused to repay other friends in the past..

no.. then why would a bank

RuthnJasper

VERY similar thread seen on here recently under a different User Name... Increasingly paranoid and bizarre posts about how banks were out to get us all... Not saying it's the same person, but....

RuthnJasper

DCFC79 wrote: »

Don't say that lol, it could be really interesting what the OP will post with next, I'm getting the popcorn so anyone getting the drinks.

Kettle's on - who wants what?!