There seems to be a spectrum that exists for people who need money. On one end of the spectrum are those that think they can tell a bank or lender what their looking for and demand the terms they want. On the other end of the spectrum are people who don’t say anything and assume they are destined to be declined if they step out and ask a bank or lender for money. In either case talking about needing money can be very hard. Why is this?
I wonder about this as I sift through the various requests we see on a weekly basis and try to figure out how we can make it easier and less funky (for lack of a better word) for people and businesses that need to borrow money.
Here are a couple of things I know for sure when it comes to borrowing money:
1. He with the gold makes the rules
2. Be prepared for the worst but hope for the best
3. Where there is no vision the people perish
I think it is hard to talk about money because we all come from a different perspective and have a different understanding of how money works. Where does it come from? How do we access it? Why do some have lots while others have little? The one asking for money (a borrower) understands their situation and need better than the one (a bank) who can give it to them. The one who can give it to them has to assume that they may not be able to repay it and acts accordingly. So what are you left with? In a best case scenario you are left with a very tense and unpleasant experience if you are someone who needs money.
What is the solution? Good question. Because I attribute the difficulty to a difference of knowledge one answer would be to educate yourself before making the decision to borrow money. Take some time to learn about the basic criteria you will be subjected to, the information you will need to have available and what risks you pose to a bank. Many borrowers believe that they will make all of their payments on time and payoff their debt with little difficulty. Banks have to assume that there is a chance a borrower may not fulfill their obligations and this is where the friction lies. This is where some borrowers become very demanding because of their belief in themselves and others become fearful because of their lack of belief in themselves.
I would also offer that you would want to work with those around you if you have professionals in your life (accountants, business coaches, financial advisors, etc). Get their input and if necessary get their help.
We refer our clients to an online platform – http://www.mlenow.ca – where they can get a great head start on learning the basics. They can see the questions they will be asked, the documents they will need and they can run some basic math while having access to the interest rates and banks that are available.
We know having done this for a long time that it is difficult to talk about money but it can be made easier. Like all things borrowing money requires a little bit of an investment of time. If you are prepared to invest some time you might find it gets easier to talk about needing money – not harder.
“All our final decisions are made in a state of mind that is not going to last.” – Marcel Proust
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