#SucceedingWithoutBleedingSeries #WorkplaceSurvival #BorrowingDecisions
Still talking #PRINCIPLE 2: Avoid Signing Surety on A Loan
As a business owner/entrepreneur: your business has its cash-in-bank to run your business yet you using a credit line from your bank to run your business. You see, for each and every note you endorse personally means you are a guarantor/surety on every of those debt.
The question that comes to mind is- why do you borrow when you have the cash?
You know what? It is so easy for your financial adviser to convince you that it does not really matter; afterall you have cash-in-bank to cover any money you borrow. But what they won’t tell you is that when anything goes wrong– “There is no offset in banking “ which means no matter how much you have on deposit, that balance will not offset your debt unless it is pledged as the total collateral for the loans.
So here is the deal: if you have personally guaranteed loans for your business- Go renegotiate with your banker /going forward don’t sign any surety on any more notes. If you bank declines or decides not to finance any more loan (if it is absolutely necessary) for you. Negotiate with another bank that is willing to give you a business loans without having you to sign personal surety on it.
All it will probably require is some concession from you e.g moving your accounts/ transactions to the bank. So bottomline ASK; there’s exception to every rule. Human beings run financial institutions and it takes your ASKING to get what you want. NEGOTIATE!
THE CHIEF STRATEGIST’s WORD puts it greatly when it says in James 4:2b ASKING Syndicate Unlimited:
“You do not have because you do not ask”
People | Insurance | Sustainable Value
#SucceedingWithoutBleedingSeries #Business-WorkPlaceSurvival #TBD
Have a Truly Rewarding 2015. Good morning!