Have you ever been responsible for others livelihood not just your family?

[Judicial review]

I'm an owner and feel responsible for my employees who some are going through financial difficulty and without working for me they will be on the streets. There's a lot riding on small business owners. More than what the avg person realizes. We employ over 50% of the workforce in this nation. I know now why many others don't become self-employed. The responsibility is huge.

Small business owners don't get the respect they deserve from Government and from banks and at times from its employees. If only you knew.

 

[Andylusion]

People who are respected by government and banks, are those that play the political game.

We need fewer of those, not more.

I respect small business owners, specifically the ones that don't bother waiting on respect from banks and government.

 

[Judicial review]

People who are respected by government and banks, are those that play the political game.

We need fewer of those, not more.

I respect small business owners, specifically the ones that don't bother waiting on respect from banks and government.

I used the money I made and started my company with cash not a loan. However, small business rely on credit to expand and expedite the expansion process and you need to show serious income and credit just to get a loan. If you don't have that then you can't get it without full equity. Not partial equity, but you basically need something worth equal to the amount you are borrowing nowadays just to get it. Might as well pay cash.

Also, employees don't play the political game.

 

[Andylusion]

People who are respected by government and banks, are those that play the political game.

We need fewer of those, not more.

I respect small business owners, specifically the ones that don't bother waiting on respect from banks and government.

I used the money I made and started my company with cash not a loan. However, small business rely on credit to expand and expedite the expansion process and you need to show serious income and credit just to get a loan. If you don't have that then you can't get it without full equity. Not partial equity, but you basically need something worth equal to the amount you are borrowing nowadays just to get it. Might as well pay cash.

Also, employees don't play the political game.

Well yeah, that's true. And let me tell you, that has generally always been true. The loan situation in the late 90s, and early 2000s, was a fluke, a crazy oddity of banking history, where people gave loans to those who had very little collateral.

In some countries, they have somewhat more flexible loan practices. But it is because in places like Britain, and Canada, they have full recourse. Meaning the bank can chase you for the debt you owe, until the day you die, or pay back the very last penny of debt.

You can't shake that debt, like you can in the US with bankruptcy laws, where unsecured debt is simply erased from existence.

So yes... here in the US, most of the time under normal situations, you have to have collateral of equal or greater value to the loan. That's normal. And as long as people can simply erase debt with bankruptcy, you are never going to see that change much.

Corporations do have a sleight advantage in that they can use the value of the company itself as collateral. This is because stocks themselves have market value, and the banks can use that. The banks also know that companies can't simply erase debt like an individual can. So they have more security against the company filing bankruptcy.

It is true, that companies CAN rely on credit to expand.

However it is not true that this is how it must be done, or is required. Small Businesses CHOOSE to borrow money, and rely on borrowed money to expand. But that is not how it must be.

Apple computer was started in 1976, used no debt to grow into the most recognizable international technology company in the world.

Zero debt. Never used credit. Still doesn't by the way.

Chipotle, the fast food burrito joint, started in 1993, never used credit, never borrowed money. Still doesn't today.

Bed Bath & Beyond
Garmin
GameStop
Qualcomm
PetSmart
Urban Outfitters

All companies with billion dollar net worth... all don't borrow, and don't use credit.

The banks, and government both, want to push the idea that borrowing money is the way the economy works, and that you simply can't do it without borrowing.

Go look up how many dozens of Government agencies, and government committees, and how many policy and regulations there are to support and push credit and borrowing. It's absolutely insane.

Yet many businesses are started without a borrowed penny. It can be done. I'd encourage you to shake off that monkey of debt on your back, and be free. You'll build your business more slowly perhaps, but detailed in depth research shows, that 100% of the people who have filed for bankruptcy, have borrowed money. There is a direct 100% correlation between the two.

 

[Judicial review]

People who are respected by government and banks, are those that play the political game.

We need fewer of those, not more.

I respect small business owners, specifically the ones that don't bother waiting on respect from banks and government.

I used the money I made and started my company with cash not a loan. However, small business rely on credit to expand and expedite the expansion process and you need to show serious income and credit just to get a loan. If you don't have that then you can't get it without full equity. Not partial equity, but you basically need something worth equal to the amount you are borrowing nowadays just to get it. Might as well pay cash.

Also, employees don't play the political game.

Well yeah, that's true. And let me tell you, that has generally always been true. The loan situation in the late 90s, and early 2000s, was a fluke, a crazy oddity of banking history, where people gave loans to those who had very little collateral.

In some countries, they have somewhat more flexible loan practices. But it is because in places like Britain, and Canada, they have full recourse. Meaning the bank can chase you for the debt you owe, until the day you die, or pay back the very last penny of debt.

You can't shake that debt, like you can in the US with bankruptcy laws, where unsecured debt is simply erased from existence.

So yes... here in the US, most of the time under normal situations, you have to have collateral of equal or greater value to the loan. That's normal. And as long as people can simply erase debt with bankruptcy, you are never going to see that change much.

Corporations do have a sleight advantage in that they can use the value of the company itself as collateral. This is because stocks themselves have market value, and the banks can use that. The banks also know that companies can't simply erase debt like an individual can. So they have more security against the company filing bankruptcy.

It is true, that companies CAN rely on credit to expand.

However it is not true that this is how it must be done, or is required. Small Businesses CHOOSE to borrow money, and rely on borrowed money to expand. But that is not how it must be.

Apple computer was started in 1976, used no debt to grow into the most recognizable international technology company in the world.

Zero debt. Never used credit. Still doesn't by the way.

Chipotle, the fast food burrito joint, started in 1993, never used credit, never borrowed money. Still doesn't today.

Bed Bath & Beyond
Garmin
GameStop
Qualcomm
PetSmart
Urban Outfitters

All companies with billion dollar net worth... all don't borrow, and don't use credit.

The banks, and government both, want to push the idea that borrowing money is the way the economy works, and that you simply can't do it without borrowing.

Go look up how many dozens of Government agencies, and government committees, and how many policy and regulations there are to support and push credit and borrowing. It's absolutely insane.

Yet many businesses are started without a borrowed penny. It can be done. I'd encourage you to shake off that monkey of debt on your back, and be free. You'll build your business more slowly perhaps, but detailed in depth research shows, that 100% of the people who have filed for bankruptcy, have borrowed money. There is a direct 100% correlation between the two.

It's not about my business at all since I'm profiting 1.2 million a year on just my income alone. I work on a cash basis and always have. However, when people apply for a vehicle loan they don't need collatiral just 2 years of income above a certain amount and good credit and they can get a 25000 loan in minutes. However, a business loan even for a franchise with income and avg credit they still need collateral and most don't. Banks wont even consider them. That isn't the way it's always been done and it's not the way it's being done with other types of loans, just business loans.

It's all due to the new banking regulations passed by congress and Obama after the 2008 meltdown.

 

[Jomama]

There is no class of people more taken advantage of that entrepreneurs. We're destined to be entrepreneurial and the leisure class needs someone to fund thier lifestyle so they look to us.

Judicial - you dont think the vehicle itself is collateral? How about a mortgage?

 

[Andylusion]

People who are respected by government and banks, are those that play the political game.

We need fewer of those, not more.

I respect small business owners, specifically the ones that don't bother waiting on respect from banks and government.

I used the money I made and started my company with cash not a loan. However, small business rely on credit to expand and expedite the expansion process and you need to show serious income and credit just to get a loan. If you don't have that then you can't get it without full equity. Not partial equity, but you basically need something worth equal to the amount you are borrowing nowadays just to get it. Might as well pay cash.

Also, employees don't play the political game.

Well yeah, that's true. And let me tell you, that has generally always been true. The loan situation in the late 90s, and early 2000s, was a fluke, a crazy oddity of banking history, where people gave loans to those who had very little collateral.

In some countries, they have somewhat more flexible loan practices. But it is because in places like Britain, and Canada, they have full recourse. Meaning the bank can chase you for the debt you owe, until the day you die, or pay back the very last penny of debt.

You can't shake that debt, like you can in the US with bankruptcy laws, where unsecured debt is simply erased from existence.

So yes... here in the US, most of the time under normal situations, you have to have collateral of equal or greater value to the loan. That's normal. And as long as people can simply erase debt with bankruptcy, you are never going to see that change much.

Corporations do have a sleight advantage in that they can use the value of the company itself as collateral. This is because stocks themselves have market value, and the banks can use that. The banks also know that companies can't simply erase debt like an individual can. So they have more security against the company filing bankruptcy.

It is true, that companies CAN rely on credit to expand.

However it is not true that this is how it must be done, or is required. Small Businesses CHOOSE to borrow money, and rely on borrowed money to expand. But that is not how it must be.

Apple computer was started in 1976, used no debt to grow into the most recognizable international technology company in the world.

Zero debt. Never used credit. Still doesn't by the way.

Chipotle, the fast food burrito joint, started in 1993, never used credit, never borrowed money. Still doesn't today.

Bed Bath & Beyond
Garmin
GameStop
Qualcomm
PetSmart
Urban Outfitters

All companies with billion dollar net worth... all don't borrow, and don't use credit.

The banks, and government both, want to push the idea that borrowing money is the way the economy works, and that you simply can't do it without borrowing.

Go look up how many dozens of Government agencies, and government committees, and how many policy and regulations there are to support and push credit and borrowing. It's absolutely insane.

Yet many businesses are started without a borrowed penny. It can be done. I'd encourage you to shake off that monkey of debt on your back, and be free. You'll build your business more slowly perhaps, but detailed in depth research shows, that 100% of the people who have filed for bankruptcy, have borrowed money. There is a direct 100% correlation between the two.

It's not about my business at all since I'm profiting 1.2 million a year on just my income alone. I work on a cash basis and always have. However, when people apply for a vehicle loan they don't need collatiral just 2 years of income above a certain amount and good credit and they can get a 25000 loan in minutes. However, a business loan even for a franchise with income and avg credit they still need collateral and most don't. Banks wont even consider them. That isn't the way it's always been done and it's not the way it's being done with other types of loans, just business loans.

It's all due to the new banking regulations passed by congress and Obama after the 2008 meltdown.

It's also due to the sluggish economy. If the economy was on fire, banks would be more likely to lend. The fact is, the minimum wage, and health care mandates, have harmed small business drastically, with franchise stores being the worst hit by both.

The banks know this. I personally wouldn't lend a penny to a fast food franchise owner at all. Not even consider it. Especially with this $15/hr movement.

While it's possible that Obama banking regulations may, or may not play a part in this.... the minimum wage and health care crap most certainly is the biggest issue. If not the whole issue.

You are crazy to give a loan to a fast food franchise, or any small franchise, in the current social climate.

 

[Jomama]

Your incorrect, Banks are dying to lend. They cant find demand. There is way more supply than demand in lending today.At least that's what all the lenders in the northeast have been telling me for years.

 

[Jomama]

Yet many businesses are started without a borrowed penny. It can be done. I'd encourage you to shake off that monkey of debt on your back, and be free. You'll build your business more slowly perhaps, but detailed in depth research shows, that 100% of the people who have filed for bankruptcy, have borrowed money. There is a direct 100% correlation between the two.

Eh, I'm not so sure. And I consider myself an expert of corporate debt as I've been burned by it, restructured debt of a dozen companies and now do leveraged buyouts. With 100% certainty I would rather protect my (hard earned, post tax) money and take risks with someone else's money knowing that I can always restructure the debt if needed and haircut them, not me. and I keep 100% of the equity !!! The companies you mentioned diluted their equity very quickly.

 

[Mac1958]

Most of the people who criticize small business owners have not one clue what it takes to get a business up and running and prospering.

Not one clue.

And that obviously includes the guy who snarked, "you didn't build that, someone ELSE made that happen".

.

 

[Anathema]

I'm an owner and feel responsible for my employees..........

I stopped reading right there JR. Unless you are failing to meet some legal standard of their employment, shorting their wages or something else if that sort you have no other responsibility to your employees.

 

[EdwardBaiamonte]

. However, small business rely on credit to expand and expedite the expansion process.

IBM grew to be the biggest and most profitable company in human history without debt. If you are borrowing to create economies of scale faster than your competitors you are playing a dangerous game. You and your industry are expanding primarily based on economies of scale achieved through debt rather than through the superiority of your products. This makes you highly vulnerable to any market fluctuations that may occur. No wonder you're so worried.

 

[Andylusion]

Yet many businesses are started without a borrowed penny. It can be done. I'd encourage you to shake off that monkey of debt on your back, and be free. You'll build your business more slowly perhaps, but detailed in depth research shows, that 100% of the people who have filed for bankruptcy, have borrowed money. There is a direct 100% correlation between the two.

Eh, I'm not so sure. And I consider myself an expert of corporate debt as I've been burned by it, restructured debt of a dozen companies and now do leveraged buyouts. With 100% certainty I would rather protect my (hard earned, post tax) money and take risks with someone else's money knowing that I can always restructure the debt if needed and haircut them, not me. and I keep 100% of the equity !!! The companies you mentioned diluted their equity very quickly.

That's true, if you can. Therein lies the problem with the banks. The banks lent other people's money, knowing it wouldn't affect them. We need to eliminate that practice.

The problem with debt though, is that you can quickly get yourself into a bind.

At one previous employer, they were running 60 days behind paying suppliers (debt), and paying payroll out of an open credit account. That worked fine for a year or two, until our suppliers cut off all shipments, demanding payment in full. At the exact same time, the bank locked our revolving credit. This happened just as our last big order was finished and done, without a replacement order.

The company had no choice but to lay off most of the work force. Cutting the crew down from 25 to 5, which accounting for almost half the company.

Compare that to where I work now. We have no debt, and the company pays most of our suppliers as we purchase. When things get tight, we just wade through it. Things are slow right now, and it's not even an issue. It is impossible for banks to call our loans, because we don't have any loans to call.

 

[Andylusion]

I'm an owner and feel responsible for my employees..........

I stopped reading right there JR. Unless you are failing to meet some legal standard of their employment, shorting their wages or something else if that sort you have no other responsibility to your employees.

Yeah, but he does. That's fine for him.