Why is it so hard to talk about needing money?

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? Continue reading “Why is it so hard to talk about needing money?”

Banks want to lend you money (really they do)

I had meeting this past week with an accountant and we were discussing the Business Development Bank of Canada.  He did not have good things to say about them based on a past experience and as we talked through the experience a few things became evident that I thought were important to share.  Here are three (3) things to know if you are looking to borrow money (forgive me if they seem obvious): Continue reading “Banks want to lend you money (really they do)”

Who owns a piece of you? (Understanding guarantees)

Disclaimer: I am not a lawyer.  This is one of those topics that causes heart burn for individuals and businesses that may be unfamiliar with how banks and lenders operate.  This topic is almost as bad as discussing bank fees – but not quite.  What is a guarantee?  A guarantee is an agreement that either you or your company is liable for a debt or obligation.  There are 2 basic kinds of guarantees: personal and corporate.  A personal guarantee means you are liable for a debt or obligation and a corporate guarantee means your company is liable for a debt or obligation.  So what’s the big deal? Continue reading “Who owns a piece of you? (Understanding guarantees)”

Pull off the band-aid and stop drinking the kool-aid

This year 3 clients have contacted me in situations where they are out of money and things do not look promising.  It is important to note that they are not new businesses and have been around for awhile, have a customer base and provide a product or service to the market.  So how did they run out of money?  Unforeseen circumstances (like not being paid on large invoices), unbudgeted costs (like a software fix), slow down in sales leading to cash flow gaps are all reasons and each of them are unique in their own right.

Continue reading “Pull off the band-aid and stop drinking the kool-aid”

Risk taker, caretaker or undertaker

I was on YouTube the other day watching Rick Warren speak at a conference for church leaders (as an aside, if you don’t know who Rick Warren is you might want to learn more. Rick Warren wrote The Purpose Driven Life – now titled What on Earth am I here for? – which became the bestselling hardback non-fiction book in history, and is the second most-translated book in the world, after the Bible) and as he was speaking I was struck by a comment he made that I think is applicable to business owners.

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Christmas shopping isn’t the only thing that happens at the last moment

As a mortgage broker it seems over the past few years that more people come to us at the 11th hour needing money at the last possible moment.  I remember when I first started brokering and the amount of lead time that was available for most deals.  Three to six weeks was a normal timeframe to get a deal packaged, approved and funded.  These days it seems like three to six days is a normal timeframe for getting a deal funded and completed.   Borrowers need money quickly and seem to have less time for wasting time.  If you find yourself in this position, here are some things to keep in mind as you go out and hunt for money:

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Who wants to work 24 hours a day 7 days a week…and worry about money?

Who in their right mind would want to work 24 hours a day 7 days a week and worry about money?  Entrepreneurs that’s who!  It seems counter intuitive that someone would be prepared to work hard and still get anxious about money but the truth is that many small businesses do spend a lot of time dealing with money issues and challenges.  This is for a variety of reasons with the main reason being a lack of knowledge about finance and it’s importance.

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Wow – this is not only innovative but really pushes the envelope

From time to time I read a great article (defined by me to be innovative and creative) and feel the need to share it.  For those of you who are aware of Uber this article may be of interest to you.  For those of you who do not know of Uber you should know that they have been disrupting the taxi industry in a big way.  They built a platform for people who need a ride and for people who can provide the ride they need.  The cost is more than that of a taxi but the experience is apparently incomparable as the owners of the car get rated for the service they provide meaning you are able to get a “private driver” as you need it without paying the full time wage of a driver.  As a result of not only their popularity but also their expansion they are now looking at helping 100,000 entrepreneurs get onto their platform in countries around the world (see “Financing 100,000 Entrepreneurs“).

Continue reading “Wow – this is not only innovative but really pushes the envelope”

Things Thursday – it all points to one thing

Between the US government shutting down and BlackBerry selling off its real estate things this week seem to point one direction – planning (or lack there of).  When we observe really great companies it’s hard to argue that they “just wing it”.  Planning ahead is clearly something they consider and anticipate as they move forward each day.  When we meet with people and businesses to discuss a mortgage or loan they are considering the same theme is at work and generally speaking there are two distinct groups of requests: Continue reading “Things Thursday – it all points to one thing”