Lenders don’t actually like lending, and SBA can be useless thus leaving many business owners vulnerable to bad actors aka SHARKS circling the waters with expensive loans that will only cripple business owners with high interest rates and stringent terms!
Trevor grabbed his iPhone and recorded an almost psychotic rant after Linda Rey spoke with a Commercial Banker we’re hoping to add to our Lender Matrix. The Banker talked about how the underwriters have removed the passion from the process, which I understand.
We’re okay with that. We don’t really need an underwriter to be passionate. Business owners need financial professionals to have common sense, which has been removed from the process. There’s no common sense underwriting anymore, especially during the COVID-19 pandemic. Mind you, the banks are sitting on trillions in deposits!
Bottom line: If banks were actually lending money right now to small businesses to help support our economy, if banks were making smart decisions about how to interact with the ongoing COVID pandemic, then the MCA SHARKS would not be circling in the waters seeking to eat small businesses alive with high interest rate loans with horrible repayment terms.
There’s blood in the waters. The MCA loans, a loan that is based upon the credit card activity in your business for the last 3 to 6 months or 12 months, depending on the lender, and the interest rate is, uh, mind-blowingly high. And they take their money every time you swipe the Customer’s credit card. So it is the worst possible financing for a small business owner.
The problem is, it’s the only type of financing that’s out there. Those are the sharks. They’re swimming in the water. HEY BANKS! You need to step up. It comes from the top down. TOP DOWN! Banks: $2 trillion. WAKE UP! Smell the coffee. Figure out how you can make small business loans during the pandemic.
Use some COMMON SENSE and figure it out!
Assess your risk using a different model instead of sitting on all that cash while the SHARKS eat Small Businesses alive.
Business Financing Documents Checklist
Stop worrying about what's required when pursuing a business loan for your small business. This list will indicate what a lender, bank, SBA, etc. will want to know about you and your small business if you're looking for a business loan. These are prudent documents that help tell your small business story. Without them, it's difficult for lenders to assess you as a risk when it comes to lending your small business money. This is NOT SPECIFIC to the SBA EIDL loan.