I was looking forward to my meeting with our customer relations manager from the bank today, as I told her that I am looking to buy a property for the company, a plan to move the ever expanding company forward into the retail market. It was also a good time to discuss my future growth plans with opening my chain of stores within the next five years.
I have never used the banks for borrowings, due to the rig moral that has always surrounded it, and from talking to various people I have now decided to give it a go.
I am looking to purchase a freehold property in the region of a million pounds, how does it work, and what can the bank offer me?
We got on very well, it is nice to put a face to the voice after a long time, and nice to have an attractive relations manager, but of course she still talks like a manager and the same old rig moral is involved.
It’s not about what you are going to do, your past, your ambition and enthusiasm but what you can secure against your borrowings. I am now in a position in my life where it is not a problem to secure most loans, but this makes me think about today’s young entrepreneurs, where do they go and how do they start?
My meeting with the bank re-iterated for me how difficult it is in today’s’ climate for the young entrepreneur to make a start. Banks are not what they used to be, you could go to the bank with your idea and if they thought it was good they would take the risk with you and share in the success if it was proved to be successful.
Today you go to the bank with your idea, they sit there and listen ,they want you to prepare cash flow forecasts, projections etc, but at the end of the day ,all they are interested in is how you are going to secure that loan, personal guarantees against your assets etc.
A young entrepreneur will have none of this, which is why they are looking to borrow the money in the first place!
I can’t wait for the next ten years, where I plan to be semi retired, I would like to hope that I will be in a position to act as a business angel /venture capitalist. Where I can take time to meet an entrepreneur, listen to their idea, see their enthusiasm and judge that they have the right drive behind them, and make a decision myself as to whether the idea could work and potentially make money.
I would not be interested in how they are going to secure the loan, I want them to be able to succeed and at the same time be able to take a piece of the action!
I would like to be able to contribute to the success of many entrepreneurs, whether it is advice, mentoring or money, lending money against the person and the idea and not assets and what they can secure.
Everybody with the right ideas, enthusiasm, time and effort deserves the chance to succeed!
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