[dropcap type=”circle” color=”#ffffff” background=”#4f4f4f”]P[/dropcap]oor bankers run around to dozens of companies with their briefcases offering lines of credit, just to have the door slammed shut in their faces. Businesspeople, fearful by nature, dismiss workers and focus on the national market because they don’t want to risk a dime. Meanwhile, the fourth power, the media, spreads lies, making everyone believe that financial institutions have locked the credit flow up tight. This is the story six bankers from the credit risk departments at leading financial institutions told us at a forum organized by the ESADE alumni association. However, they didn’t warn those in the audience that it would be a scary story. It may be real; it may not. In this story, the bankers are Robin Hood and offer companies the credit they need to move forward with their projects, to export, in short, to stay afloat. But these businesspeople often refuse, seemingly having no desire to pull out of the crisis.
[quote align=”center” color=”#999999″]So, if you are a businessperson and you have a solvent project, be patient, one of these days a man in a suit and briefcase will turn up at your office and happily offer you a line of credit.[/quote]
“When we speak with businesspeople, they tell us they are worried about when their sales will hit rock bottom, how low business can fall, but they never think about getting out ahead of it. This is the reality we often find, although in the media it seems that the banks are the bad guys that aren’t giving credit because they don’t want to.” One of the bankers explained that the same thing happens with credit for companies. And he reminded those in the audience that if credit is more expensive now, it isn’t because banks are greedy. It’s because regulations are asphyxiating them and driving up primary credit prices for the banks. “These additional costs must be passed on to the client, that’s how it is and how it always will be, because credit will never again be as cheap as it was five years ago,” explained another banker. So, there is credit available, lots of it. Because another man in a red tie, the corporate colour of his bank, explained to the auditorium that his bank has gone to thousands of companies offering ICO loans and has had thousands of doors shut in their face…
So, if you are a businessperson and you have a solvent project, be patient, one of these days a man in a suit and briefcase will turn up at your office and happily offer you a line of credit.
They may pop by soon but if they don’t arrive in time, and you have to shut down the company, don’t hold it against them. It’s because they’ve been busy giving credit to thousands of other companies and haven’t had the time to come by your office.