I see and hear enough people pouring ‘blood, sweat and tears’ into their businesses to understand that any numbers that maximize and translate to profit help to stop cold sweats.
Lenders ask tough questions and expect full answers; they have the power to reduce an applicant’s options, as economic imbalances are making risk variable, distorted and ever more complicated.
When a one-way route is taken the realistic questions are too often overlooked in favour of simplistic assumption that lenders get to ask all the questions….. The only stupid question is the one you don’t ask: Why would someone looking for finance want to reduce their options?
The truth is, that with a reasonable track record, lenders will lend. For someone who’d done an awful lot of asking (via me and they’d got a lot of answers), I recently learnt they had chosen to cosy-up with that which they deemed an ‘easier’ option. Their chosen path distorts their (in-part) idea to cost-save and appears to have calculations organised by a frozen calculator. By evaluating a dominant factor, the limitation in an increasingly distorted financial landscape, my calculations went beyond the total cost of the loan. Their calculations, being deficient, mean they’ve made a massive error. They might be patting themselves on the back now but, ignoring the large permanent loss in the future, their move will be very costly.
And so it continues – Someone, somewhere, is at this very moment fretting about staying competitive and productive, all while they’re sweating their assets like a green curry eater in a tropical climate and the rug covering the things that need attention, challenges and problems, resembles the outline of a camel’s hump in a sandstorm.
After hitting the online finance `search’ button, the usual and understandable (to some extent) response to researching is to overlook the distorted facts or simplistic assumptions among the main players marketed to dominate (likely placing it all under the ever higher rug mound) and be incentivised into thinking a Monopoly Community Chest might actually exist; Bank Error in Your Favour (Collect £x).
Unlike where the great god that is Google can be found, financial mistakes can’t be rebooted.The best outcome someone in business can allow themselves for tough decisions (financial or otherwise) is to sweat the small stuff; full answers to tough questions.
Image and Article credit: Copyright SUF © 2016