Is your business in financial trouble? Are you concerned about staying afloat while you figure things out?
If you find yourself in this position, you’re likely to search high and low for the money required to save your business.
While there are many options to consider, some business owners make the mistake of turning their attention to a loan shark. Here’s why: they can secure the money they need without a long application process. Furthermore, if they have bad credit, their chance of approval is greater than it is with more traditional options.
Even if this sounds like a great idea on the surface, you shouldn’t go down this path. It may provide you with some immediate relief, but as the days turn to weeks you’ll come to realize that there is no end in sight.
Here are some of the many reasons to avoid taking money from a loan shark:
• The interest rate will be extremely high, as there are no regulations in place
• If you don’t pay the money back in time, you may find yourself dealing with an extremely angry lender who threatens you in a variety of ways
• It’s a vicious cycle of borrowing that can be difficult to break
Turning to a loan shark to save your business could end up being the final straw in going under. Rather than opt for this type of loan, consider the following options:
• Bank loan
• Credit card
• Loan from family and/or friends
• Home equity line of credit
• Personal loan
These are all much better options, as you’re dealing with legitimate financial institutions (or loved ones) that won’t attempt to take advantage of you. Instead, they will provide you with your options and help you find the product that’s best for you and your business.