If Banks were like McDonalds...
February 9 2016 Posted by Steve Bucher
When I talk to business owners, they almost always complain that they can never get money when they need it. When things are going well and they don’t need money, the banks are always offering money…but, when they have a slow period, and they need the money, the bank usually says no.
Could you imagine if McDonalds acted like a bank? You walk up to the till and ask for a Big Mac and they respond “do you have a Big Mac”? “No?” “Sorry sir, if you don’t have a Big Mac, how can we give you a Big Mac? It sounds ridiculous doesn’t it.
The lesson here is to be a good steward of your credit in the good times, so that you have access to money in the bad. Good questions to ask yourself are:
- What financial reserves do i have if I encounter 6 slow months, 12 slow months or more?
- What would I do if I could not make ends meet?
- What signs would there be that business is slowing?
The easiest time to apply for higher credit limits and other credit products is when things are going well. You dont have to use the new limits, but having them available will make you a stronger, healthier business.
Steve, Mortgage Consultant
250 682 6077