The Value of Honesty in Business Financing
- July 3, 2019
- By Aidan Dwyer
There is no denying the value of honesty in financing. The financial world can be a scary place, especially for small business owners. There are plenty of people in the business financing industry with low morals and an eye for deep pockets. Business financing salesmen are notoriously pushy when it comes to making sales, making it difficult to determine who you can really trust.
Honesty is always the best policy in the business. Consumer trends are beginning to change, and honesty and transparency have taken more prevalent roles in a companyâ€™s success. Businesses are more likely to work with a business financing company that is honest with them and tells the truth. Rather than, spitting extremely low rates and asking to sign contracts.
There is a method to the madness of financial sales – there are some truths behind what you might hear from a business financing representative. We are going to break down some of the stereotypes that are common among business financing companies.
Lenders Only Look to Finance People Who Already Have Money
A common misconception is that lenders only look to lend to people who will have enough money to pay them back. This is completely false; the majority of businesses that business financing companies work with are just businesses who need money in general. Honest business financing companies will actually look to help businesses. Especially, who are in desperate need of money. It is because they see the value in helping out a small business in need of cash.
If a lender funds someone who actually needs the money. Then, there is a higher chance that they will be a returning customer. They will come back when they need more financing or working capital. The costs of running a small business have dramatically increased over the past 10-15 years. So, having extra capital on hand can be a huge benefit to almost any business. But the ones who actually have a use for the money are the ones that honest lenders will look to finance and help out.
There Is No Such Thing As a Crisis
If you have ever dealt with a salesman before. One of the most common scare tactics that they use is the fear of a crisis happening. They will tell you that the world will fall apart if you don’t purchase their product or service, the world will fall apart on top of you. In most cases, those scenarios are very far-fetched, but in the world of business financing there is some truth behind what the salesmen are saying has some truth to it. When running a small business there are always things that can go wrong.
Every business owner knows that having extra financing can be extremely helpful when a crisis does arise. An honest business financing salesmen will not try to sell you the financing that you don’t need, but rather financing that can act as a safety blanket if a problem were to arise. One perfect example of emergency funding is a line of credit. A line of credit essentially acts as a credit card for your business. You will be pre-approved for a specific amount of money. Also, you will only start paying interest on the money that you have spent. This is perfect for businesses that do not necessarily have a need for financing at the moment but want to be protected and secure when future problems arise.
At REIL Capital, we have made it a goal to be honest to every client that we work with. The truth is that there are some businesses that will not qualify for any of our financing programs. Thus, we make sure that we will actually be able to help your business before we even give you an offer. If you want to see if your business qualifies for one of our business financing programs, fill out our commitment free application today.