Friday, November 20, 2009

What What You Want When It Comes To Buisiness Credit

By Dirk Andersen

You may have better luck winning the lottery than obtaining a business loan in today's economic times. This is due to lenders being extra cautious about who they lend to. This may seem ironic however since the lending money is supplied mostly by the customers who are seeking loans.

You may see many sad stories on the news lately about people who have lost it all due to the bad choices that some bank executives have made when it comes to investing. As a result many of these executives have shamefully apologized for their mistakes. This may never be enough however for those that were left hanging to dry.

Irresponsible lending and irresponsible borrowing go hand in hand. Banks often lent money they did not have to people who on paper had clean records but in reality could not pay the loans back. This makes for the perfect storm.

One should think twice about accepting a large loan in that you may not be able to pay it back. This would result in bad credit that may haunt you for a long while.

Today's motto should be borrow responsibly and never speculate for your business. This may have been opposite thinking in the past however in today's economic climate you need to be extra careful with your spending habits. Always be resourceful.

Sometimes doing the responsible thing when it comes to borrowing may seem mundane however it is a requirement if you want to see success in the future. Always be aware of what lies ahead and you may be rewarded for it.

You need to get out and get real business credit and stop using your personal credit cards as leverage. I can be the first to tell you that there is a lot of business credit available even in this awful economy. If you start leveraging your personal assets for your business though you could end up broke and homeless. Not to mention stressed out and separated from your family.

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