Finance companies are your friends?

11. August 2009 by admin.

Today I was browsing the internet looking for news regarding our industry, and I stumbled upon a few things that slapped me across the face.  The first was a press release that was configured to look like a news story.  I won’t name the company, but the title said, “XXXXX Offers Assistance to CIT Customers Seeking Alternative Sources of Small Business Financing.”  The article went on to point out CITs December 2008 receipt of $2.3 billion in bailout money, and that Company XXXXX were ready to help out businesses that are “currently relying on CIT for financing, as these CIT customers may soon be unable to find alternative financing, and could slide into bankrupcy along with CIT.”  Very subtle.

 This example of a finance company disguising its true intentions (stealing CIT’s clients) with the altruistic message (offering “assistance”) is a common one.  However, when the reality of the situation is revealed, it can leave a bad taste in the client’s mouth.  I once sat on a financing panel along with a commercial lender from a large national bank.  The audience was a bunch of young, aspiring entrepreneurs.  He gave one of the most honest statements I think I may have ever heard.  This is not a direct quote, but the message was something like this.  We are not your friends, we are a business.  We are in the businesss of making money.  We loan money and expect to be paid back on time with interest, period.  Compare that to this advertisement by American Express:

A little different message, right?  Now I don’t mean to pick on Company XXXXX, or American Express, or any other company for that matter.  I just wish businesses, financial or otherwise, would be more honest.  The truth is, very few people own or run a business just for fun.  Most, including myself, are in it to make some money, and there is absolutely nothing wrong with that.  I just wish they wouldn’t go to such lengths to convince people otherwise.

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