Recently, one of our clients commented that he “wished they had taught us this in school” when discussing the many requirements of a bank from those who wish secure loans. As we are all well aware, banks often make it difficult for one to borrow money. This is especially true if you are a Canadian business owner, as this client knew from personal experience.
While some encourage the borrowing of money in order to build one’s credit rating, most people who have dealt with a bank to get a loan realize how intrusive the process is. Having to put your house up as collateral is just one of the risky requests that banks may ask of someone looking for money.
Our client, of course, feels a lot more comfortable knowing that no collateral is necessary for getting a merchant cash advance. In addition, one’s credit rating is not impacted by participating in our merchant cash advance program. Best of all, payments are made through an automated process, only when credit and debit sales are made in the store.
Therefore, none of our clients are ever in danger of being “late” with a payment or getting charged accruing interest fees and penalties. Business website, TotalTicketSystem.com appears to completely agree that borrowing money from banks is risky business.
On the site, which claims to provide “the stuff they don’t teach you in school”, a recent article discussed the various ways that business owners could use their money to grow their businesses. The comments about banks were surprisingly scathing. Then again, may the sentiments expressed aren’t all that shocking.
Says TotalTicketSystem.com: “The Borrower is a Slave to the Lender. Period. When you borrow money from a bank, a friend, or a relative, you now serve them. You’re paying interest, and you will subsequently start making decisions based not only what should be good for the business, but what will ensure you can pay the note.”
The site goes on to insist that loans often coerce business owners to “take ill-planned risks” such as the previously mentioned use of one’s home as collateral. They encourage business owners to fully research their funding opportunities in order to make the best decisions possible for how they plan to finance the growth of their companies.
At the end of the day, this is all Synergy Merchant Services has ever requested of a potential client. Weigh your options to figure out which one works best for you. The least you could do for your business is to discover as many ways as you can to get extra working capital. As well, help yourself to not risk losing it all in the process!