Business Owner Beware: Know Your Numbers
I was recently asked why did I make the decision to roll out a course regarding finance options for business owners. The answer is simple. From working in the industry as an independent broker and advising business owners with options for funding their business, I have found that although terms may be clearly defined by possible lenders, the terms themselves are misunderstood to most business owners.
In my opinion, this is a product of two things:
1. Predatory lending and sales tactics
Now, I will say that I have friends still in the industry and I have heard them clearly explain terms, implications, and expectations responsibly to their clients so I will not say that ALL lenders are predatory. That is simply not true.
On the other hand, I will place some of the responsibility on the business owner. Let’s say these terms are explained clearly. Are you 100% comfortable in their definitions of these key terms? Are you aware of the multiple options you have or do you feel backed into a corner making a decision?
The following is a great example written by Jason Fleming at dealstruck.com. I will place key terms in bold lettering in the following example.