Advice - Banks Don’t Like Small Loans
Banks typically have a $200,000 threshold loan limit.
Over the past 15 years, the number of loans given to companies over this $200,000 limit has grown over 30%. On the other hand, loans given to entrepreneurs who need less than $200,000 has been stagnant for the past 15 years. If you look at this number in real terms and account for inflation, the loans given to small businesses has actually been decreasing.
As Chuck Loewen from Online Business Systems says, “Understand the real role of a financial institution is to lease safe capital to low-risk borrowers. Entrepreneurs, full of vim and vigour mistake the bank’s role as the entity that will share the risks with them to see the entrepreneur’s dream come true. Not so. Always understand you are the entrepreneur, he or she is the banker.”
Over the past 15 years, the number of loans given to companies over this $200,000 limit has grown over 30%. On the other hand, loans given to entrepreneurs who need less than $200,000 has been stagnant for the past 15 years. If you look at this number in real terms and account for inflation, the loans given to small businesses has actually been decreasing.
As Chuck Loewen from Online Business Systems says, “Understand the real role of a financial institution is to lease safe capital to low-risk borrowers. Entrepreneurs, full of vim and vigour mistake the bank’s role as the entity that will share the risks with them to see the entrepreneur’s dream come true. Not so. Always understand you are the entrepreneur, he or she is the banker.”
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For more information, visit www.EvanCarmichael.com. |
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