Lessons
How To Move Forward and Make Money with Susan Schreter
How To Move Forward and Make Money with Susan Schreter
1Course Introduction
02:46 2Improve Your Business Mindset
08:36 3How to Fund Business Growth
07:20 4The Dangers of Need-It-Now Funding
05:05 5Steps to Build Your Plan B
08:00 6Create Value in Your Business
07:18Lesson Info
The Dangers of Need-It-Now Funding
So let's talk a little bit more about borrowing money. There are wonderful community banks located all across the country, in every state, in small rural areas or in urban areas. Sometimes these banks only have one or two branches don't discount them. These small community banks or just small banks are more inclined to welcome small businesses. And for what if they do loan money, their rates tend to be far less than what the big banks charge. So when you're first thinking or approaching a bank, I would start small because you're probably going to get a better welcome. But here's a word of caution. Not all quote small business lenders in your community are good lenders and sources of great loans at a great price. And it's hard to tell the difference, but I've mucked it out. I investigate. I pretend and go into all different kinds of banks just to see how small business owners are treated well. There are rules in every state that allow big loopholes for certain types of financial service...
s companies to charge 203 104 105 100% where the big banks could never do this. It's a form of small business payday lending And they will do everything possible not to tell you how much in percentage terms they're going to charge you for borrowing money from them for 30 days, 60 days, 90 days. Let me tell you you would be better off Using your credit card at 20-30%. Then using these small payday lenders, They make it sound so easy and so affordable, just $ a month. Well, those fees keep racking up every single day. Not on an annual basis, not on a monthly basis, but on a daily basis. And if you roll that loan over for another 30 days, you will just be paying more and more. I call it financial quicksand. It's not where you want to go. Stay away. Find another way. Here's a second note of caution that I'm finding online. It's tough to tell. But you will click on, we're tempted to click on notices, advertisements for small business loans at great rates and you'll fill out an application that includes your company's uh tax I. D. Number, your personal Social Security number and of course your business bank account number. Why? Because that's where they need to drop in the loan proceeds. But as fast as you give out all of that information, I guarantee you money will leave your bank account rather than arrive in your bank account. There's too much fraud out there. Beware don't get caught up in it. You won't get the money back if it's out of a business checking account. And the people, the bad guys who are in different countries, they know this, you won't get the money back. So beware, make sure whoever you are borrowing money from really has the rights to operate in the United States or preferably in the state where you do business stay away. Find another way if it's fraud, you won't get it back. Here's something else about payday business lenders in my course, I dive into this in deep detail so that you'll know exactly what to ask any business lender about what you're going to be charged. And as I said, if it's a paid a business lender, there's so many other better ways to raise money for your business than that. Its financial quicksand. Walk away. Find another way. Now, here's the watch point for identifying fraud. If you were asked or something lands in your email from a lender you've never heard of. Don't go there. It's likely not to be legitimate. If somebody asks you for your business checking account information, slow down, really slow down and make sure these sources legitimate. It's not worth it. If you only have a precious amount of money to build your business to implement in your plan, B, don't give it to somebody on the other side of the world.
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