Most companies will look to borrow money at some point during their existence. This can be due to going through difficult times with reduced income or it could be to carry out the financing for ambitious expansion plans.
Whatever the borrowing is for, small business owners have today been advised that they need to be aware of the main risks and dangers to look out for in the business lending industry. This includes fears that loan brokers are currently targeting companies with predatory lending practices that could spell disaster.
This advice was handed out by Craig Ridley, who is the Founder of YourBusinessCoachingClub. He pointed out that regulators in the USA have recently expressed concerns about current business lending methods. Indeed, he also noted that some analysts have suggested that this has the potential to be the “next subprime mortgage type of disaster.”
Many small business owners now look online when then plan to borrow money, largely to due to increasing difficulties with getting business loans from conventional sources such as banks. With a number of online lending options independent of the big banks, this is something that promises to become ever more popular over time.
Mr Ridley confirmed that it can be “incredibly tough to get hold of money for a small business, especially if it is needed in a hurry for an emergency.” He pointed out that some entrepreneurs use their personal resources to fund a company, sometimes even taking massive risks by running up their personal credit card bill or re-mortgaging their home to meet business challenges.
YourBusinessCoachingClub is a ground-breaking business coaching site based on the founder’s 30 years of experience. It offers both business coaching sessions and the chance to hook up with a worldwide network of fellow entrepreneurs. With a low daily cost of less than 50 cents, the chance to join up at YourBusinessCoachingClub is open to everyone.
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