In an effort to drive the US economy, Washington continues its quest to get big banks to offer more to small business lines of credit, and week on week it seems to get more challenging.
And in part I can see why. For one, why would they extend cash to a small business that is already on its knees, meaning that they too put their line of credit and in turn their business at risk? I mean after all, their business model is already archaic at best and one of the most inefficient animals I have had to deal with. Overlay to that the potential of further bad debts and for sure you’ve got a bunch more that will hit the wall.
Now don’t get me wrong, I am not saying the banks should not ‘lend’ a hand, for sure they should pony up, after all so many of them helped create the position we’re in right now. And after 20 years in business you’re not going to find this entrepreneur taking the side of the bank. I’m yet to find a bank that I can say I truly have a relationship with, in fact I am yet to find a bank that I would not happily break out the snags if it was burning to the ground.
But you will find me taking the side of logic. And for sure if there is one thing that defies logic for me, it’s the basic American business banking system.
You want to fix small business credit Washington? Fix the banking SYSTEM, get these guys online in into the new millennium. Get the efficiently right then they might just be able to wear the rollercoaster of the good days and the bad days with small business client lending.
Troy Hazard is the former global president of the elite Entrepreneurs’ Organization, and Switzers’ resident alien in the United States. He has owned managed and run ten companies in the last two decades; is an international speaker and author of The Naked Entrepreneur.
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