Last week, 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.
That’s our job as the person who originates the loan application.
There’s no common sense underwriting anymore, especially not when it comes to the COVID-19 pandemic. The Banks are NOT lending. Mind you, the banks are sitting on $2Ttrillion 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.