A Legion of Lenders is Coming Ashore: How to Fortify Your Borrowing Defenses

Yoda and the Foreign Legion

Image by floodllama via Flickr

The Wall Street Journal reported that Bank of America plans to hire 1,000 new small business bankers in 2010-2011. The new hires will be responsible for bringing in new business by offering help with lending or cash management services.

There are a few lessons here about borrowing and lending:

  1. Many banks are under intense political pressure to increase lending to small businesses.
  2. Since small businesses create most of the new jobs in the country, our elected officials believe this is a way to prime the employment pump.
  3. There is abundant liquidity in the financial system.  There is a shortage of qualified borrowers.  Government is pushing on the wrong string.
  4. A bad investment, poor business performance or a weak economy cannot be made better with borrowed money and can be made much worse.
  5. Idea fairies can cloud the borrower’s judgment.  The future always appears much rosier than it turns out to be for many businesses and individuals.
  6. The average borrower is outgunned and overmatched.  You need a borrowing advocate to level the playing field.  Consider hiring a professional borrowing coach.

Memories have faded from bank loans gone badly due to flimsy bank underwriting for questionable borrowers.  History is being repeated.

What would you tell your congressman or senator if they asked you to lend money to today’s under-qualified borrower?

Oh yeah, you are a lender through taxpayer-funded loans and loan guarantees!  Call them today and voice your opinion.


About Michael Shelton

Your Business Coach Facilitating Delegation and Work Group Engagement Michael Shelton has over twenty-five years of business and military accomplishments, including extensive experience with one of the largest, publicly traded real estate investment trusts (REIT). He is a qualified business coach with assignments in cross-functional work group management, strategic planning, unit leadership, joint venture acquisitions, executive education, mentoring, training and merger integration. Michael has accumulated best practices for building committed work groups from more than $4 billion of capital markets transactions and commercial property development. He served as a commissioned officer and helicopter pilot in the U.S. Army, and earned his MBA from The University of Arizona. Michael has served as a major conference panelist and is the author of Cash Flow Rich, Winning Ways to Evaluate and Finance Real Estate. Today, he helps business owners get more work group engagement as President and CEO of Shelton Business Services, LLC in Scottsdale, Arizona. Disclaimer: I don't offer investment, legal or tax advice. Talk to your broker, accountant or lawyer for investment, tax and legal help. I might own stock in the companies I mention on-line. My posts, tweets and other on-line activity are my personal thoughts and don't represent my employer or company.
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2 Responses to A Legion of Lenders is Coming Ashore: How to Fortify Your Borrowing Defenses

  1. Pingback: Lenders are Advancing! Borrowers, Run for the Lettuce! | Pro Borrower

  2. Pingback: Bad Dog Debt: How to Avoid Selling Your Future Lassie Happiness | Pro Borrower

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