Lenders are Advancing! Borrowers, Run for the Lettuce!

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How do you compete when you are outgunned, outmanned, outmatched and every other OUTed in the dictionary?

What hope do borrowers have today?  Is hope the best strategy there is?

The Wall Street Journal reported that lenders are becoming very aggressive with their lending practices.  Borrowers are being pursued in grocery stores of all places.  You’re not safe from loan pitches even between the bastion of cucumbers and the castle of cumquats anymore.

So what can borrowers do to outrun the pursuing loan officers?

1.  It’s important to know what you don’t know.  The lenders have all the training and legal support to draft terms and conditions that maximize the bank’s profits and minimize their lending risk.  It’s not a level playing field.

2.  Surround yourself with an experienced borrowing advisor to help you see your blindspots in the borrowing process.

3.  Avoid the five most common borrowing mistakes incuding overestimating your available cash flow to repay the loan.

4.  Be sure your borrowing is rooted in sound decision making and strategic for your business or personal needs.  Don’t follow financial rabbit trails or borrow from your future happiness for questionable benefit today.

You need a license to catch a fish but they’ll let almost anyone sign a loan agreement.  Do you know what you’re doing? Are you sure?

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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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