2 ms·

Yup. And this is why smart companies avoid that game. I know one regional company who sells nationally/internationally which has done that for decades. Decad

by toss1 3y ago

Yup. And this is why smart companies avoid that game. I know one regional company who sells nationally/internationally which has done that for decades. Decades ago, the owner asked the local bank for a growth loan for some equipment and was turned down. The next week, he found out that one of his employees, who depends 100% on his company for income, went to the same bank for a motorcycle loan and was approved. the business owner was so outraged at the bank's stupid decision-making (if the business isn't good for the money, how will the employee be good for it?) that he decided to never use bank debt for growth again. That was in the 1960s, and the company is doing great, focusing on product and service and not financial games, with very expansive and expanding facilities and workforce. The regional bank was absorbed long ago. Remember: no matter how much banks advertise being your partner and friend, they are not.

floren 3y ago
They're not your friend, because they're in the business of making money. Unless that business was the only employer in the area, the owner was basically just having a tantrum over the idea that different kinds of loans for different amounts of money might have different decision-making processes behind them. When my credit union decided to give me a car loan, they didn't look into the solvency of my employer, they just saw that I have good credit and a steady income and took a safe 5-digit gamble. It may have hurt the owner's feelings to essentially be told "we're pretty sure we can make our money back on this $1000 motorcycle loan which has a very easy-to-deal-with collateral, but we don't want to give you a $100000 for specialized equipment"
- toss1 3y ago
  Even if you see it that way, the result of his decision was excellent, and likely superior. I've literally dealt with banks (US state/regional scale) as a technology business with a loan that was absolutely current and on-time every one of scores of months, and we were running profitably (small, but definitely positive). Yet, when the bank started having problems in their real-estate sector, they came and called in OUR loan. We had to seriously scramble to have it not put us out of business, cold. There were several other businesses in the area, also non-real-estate, that were caused to fail in this bank's BS moves and made the local papers. It is not just that bank's business is making money. They have a whole bunch of internal incentives that make it perfectly OK in their eyes to fck over anyone for no reason other than to make their personal numbers this month look good. And they don't hesitate to do it.
valval 3y ago
Banks are actually everyone’s friend, there’s a crazy amount of demand for those services for a good reason. Governments aren’t.
- toss1 3y ago
  Good luck with that approach. Just because there is a demand for a service, does not make the provider your friend. Yikes.
  - valval 3y ago
    What on earth do you mean with “good luck”? I’ve not once been fucked over by a bank ever. Quite the contrary — they’ve given me hundreds of thousands in loans for something I couldn’t afford, at a price I more than agreed to. That’s exactly what they’re for.

by toss1 3y ago

floren 3y ago

They're not your friend, because they're in the business of making money. Unless that business was the only employer in the area, the owner was basically just having a tantrum over the idea that different kinds of loans for different amounts of money might have different decision-making processes behind them. When my credit union decided to give me a car loan, they didn't look into the solvency of my employer, they just saw that I have good credit and a steady income and took a safe 5-digit gamble. It may have hurt the owner's feelings to essentially be told "we're pretty sure we can make our money back on this $1000 motorcycle loan which has a very easy-to-deal-with collateral, but we don't want to give you a $100000 for specialized equipment"

toss1 3y ago
Even if you see it that way, the result of his decision was excellent, and likely superior. I've literally dealt with banks (US state/regional scale) as a technology business with a loan that was absolutely current and on-time every one of scores of months, and we were running profitably (small, but definitely positive). Yet, when the bank started having problems in their real-estate sector, they came and called in OUR loan. We had to seriously scramble to have it not put us out of business, cold. There were several other businesses in the area, also non-real-estate, that were caused to fail in this bank's BS moves and made the local papers. It is not just that bank's business is making money. They have a whole bunch of internal incentives that make it perfectly OK in their eyes to fck over anyone for no reason other than to make their personal numbers this month look good. And they don't hesitate to do it.

valval 3y ago

Banks are actually everyone’s friend, there’s a crazy amount of demand for those services for a good reason. Governments aren’t.

toss1 3y ago
Good luck with that approach. Just because there is a demand for a service, does not make the provider your friend. Yikes.
- valval 3y ago
  What on earth do you mean with “good luck”? I’ve not once been fucked over by a bank ever. Quite the contrary — they’ve given me hundreds of thousands in loans for something I couldn’t afford, at a price I more than agreed to. That’s exactly what they’re for.