Banks are not your friends (part 1)

Yep, I've been meaning to write something on this topic for years. I love the way that the Bank sells itself in the Branch with various advertising of happy smiling Bank people who are doing something wonderful for their customers. Look, they are in the business of selling you something in order that they can make a profit. It is up to you to decide if it is inappropriate but if they can sell you something and make an easy buck you can bet that they will. And remember that if you borrow money and cannot pay it back, just you watch their happy smiley faces change to stone and pass your debt straight to their legal department for collection faster that you can say 'bad debt'. OK I know that sometimes you need finance for your business, all i'm saying is that when you sign on the dotted line for the borrowing, just do it with your eyes open and consideration of the risk This is especially true if you are having to give a personal guarantee and security (which might be security of your home). Remember, if you cannot repay the debt they will take your home away. So now more than ever, if you need borrowing for your business make sure that you talk top friends and family members and your professional adviser (me) to make sure that what you want the money for is based on sound reasoning (e.g. the ability to make future profits and ready cash to pay your monthly repayment. It is like this, Banks give you an umbrella, but when it starts raining, they want it back! Here endeth the lesson .