Back in 1981, with the prime borrowing rate at an all-time high of 21 percent, most bank customers felt that those cameras they have in banks to photograph robbers should, in all fairness, be pointed at the “real” crooks: the lending officers. At such rates most companies found it difficult (if not impossible) to borrow money. Actually, it wasn’t so hard to borrow money–it’s just that no one could repay it.
Those days of exorbitant interest rates are gone now, at least for the time being. In fact, interest rates are at all-time lows. However, the problems of finding capital and repaying loans remain, and many business owners have feelings of animosity and bitterness toward banks and bankers as a result of their bad experiences. For just a moment, let’s redefine the Golden Rule: Those who have the gold, make the rules. Read full article here.