(Because It Has Long Lasting Negative Affects!)
Have you also noticed what the long term negative affects of being denied a loan does to local communities? Just like when your/our local community is booming with building tons of new residential housing and commercial buildings.
The developers, contractors, builders, plumbers, electricians, bankers, title companies, real estate attorneys and realtors and agents.
Are experiencing lots of business, right? Unfortunately every time local banks legitimately deny local business owners and service providers loans. This too causes a long term, residual negative effect. Have you noticed?
Let’s Talk About The Long Term Ripple Effects!
Now let’s consider the potential long term negative effects. Whenever a local business owner, small or otherwise. Or a local service provider is legitimately denied a loan. That’s not the end of it.
For starters, it stifles the growth of the company. They miss out on being able to fund their/your future growth. Thy or you don’t have the much needed capital to hire/attract the best talent they can afford to hire.
They don’t have the much needed capital to invest into expanding their business and or service. They don’t have the needed capital to advertise, market and or promote.
They don’t have the much needed capital to pay hefty, attractive bonuses! And or incentives to attract much needed new talent. Your/our local communities growth is temporarily or permanently stifled, right?
Entrepreneur are you really starting to truly appreciate, the long term, negative ripple effect of business owners and service providers. Legitimately being denied either short or long term loans?
Loan Denials Stifle Long Term Growth!
Think about “how” this also negatively affects the bottom line for local banks and or credit unions etc. Because remember. Those institutions make their money/gross profits by reloaning their depositors money! (Say what? 😎
You and deposit our extremely hard money in their accredited institutions, for a certain guaranteed interest rate, correct? They turn around and loan the exact same money! Only at higher rates.
Via short and long term loans. And via credit cards. And they/meaning the lending institutions, have to consistently earn enough gross profits to?
Pay for their commercial building space, right? Pay their employees. Including the or credit union presidents or management staff. Pay their promotional, advertising or marketing costs. Plus cover the inevitable losses from the inevitable defaulted loan losses!
They get too many and they can be permanently shutdown! (It happens!) If they experience to much of what’s sometimes referred to as “Non Performing Loans.” (NPL’s.)
Local Lenders Can Potentially Experience The Long Term Negative Affects Too!
Then suddenly the lenders, (including your/our local credit unions BTW.) Are legally non able to loan out as much money. Which means business credit takes a temporary or permanent negative hit!
The bottom line. Whenever or each local business owners and or service providers are legitimately being denied a loan. It’s potential, long term negative effects.
Can and definitely will be felt for a while. Don’t you agree?
The More Cash Flow You Have! (The Better Your Odds Of Qualifying For A Loan Or Extended!)
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