What do I mean by Parent Finance? Well – that’s what I call the ‘back-up-plan-for-when-the-fat-hits-the-fan’ option. Nowadays its hard enough growing up, but trying to afford to buy a house, start a business, grow a family….these things are becoming more and more difficult for each new generation.
Now you could argue that older generations were less materialistic and more realistic about what they could afford and well…credit cards hadn’t been invented. I would definitely agree in part with this – however there is a huge chunk of reality that slaps new generations in the face:
(a) out-of -reach mortgages (home loans),
(b) property prices and
(c) the cost of living being at an all time high.
My worry is that this will adversely affect the sprouting of new businesses and the future entrepreneurs out there. Heck I have a daughter that is 4 months old and my biggest wish is for her to be able to do absolutely anything her heart desires and florish at what she is (will be) good at – what I don’t want is money to stop her being all that she can be.
I have never been one to lend money – but you can see why you need to…when it comes to trying to start and/or grow a business. For franchises – financing is pretty crucial especially for a start-up franchisor. He/she has a lot of work to put in, in order to get his/her model into a healthy franchisable position and be able to support a new growing network of franchisees. What I don’t understand is banks that have dealt with some business owners for years (even in a personal capacity) are not willing to sit down, have a chat mano-e-mano (or womano) and see what is POSSIBLE…as opposed to immediately jumping on to the fence of ‘NO WAY…not possible’.
I dare any bank to revert back to the good old of days of healthy client relationships based on give and take…and most importantly trust. As with disciplining children….parents oddly end up punishing the good kids…because one bad kid messed up. I feel that the ‘loan requirements’ nowadays are a result of years of bureaucracy and once off fraud cases….and have become as stifling as a mole that can’t find away back up to the light.
What are your experiences or thoughts on the subject?
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