Read This!

You will find a report by Mark Ashton on “banks waste money on small firms” at: http://www.fin24.com/articles/default/display_article.aspx?Channel=Personal-Finance_My-Business&ArticleId=1518-2386-2399_2562051&IsColumnistStory=False

I am not surprised that banks lose so much money on small businesses because the guys lending the money are all salaried employees, no matter how much they earn, whatever their share options are, they remain guys who get money paid into their personal bank accounts at the end of the month without invoicing, with invoicing again, and again. They have pension schemes and medical schemes.

How on earth can they understand the world of an entrepreneur?

They scrutinise business plans and think entrepreneurs are energetic, innovative risk takers; while the people pitching up are desperadoes struggling to keep the wolf from the door; or conversely super salespeople with masterful presentation skills, short attention spans and little ability to focus day after day while sweating the hard stuff. 

Banks waste money on smalll businesses because the people lending the money cannot begin to comprehend the psychology of the "entrepreneurs" and the risks they take.

You may now wan to click through to the next installment of "Why bankers waste money on small businesses."  Click on the link: http://blogs.fin24.com/bertieduplessis/oh-my-god-i-cannot-go-on-like-this and then onto the following one: 

 http://blogs.fin24.com/bertieduplessis/type-one-and-type-two-entrepreneurs