WHAT IS THE APPEAL OF LOAN SHARKS TO A BUSINESS OWNER?

In my last article I gave a recent case study on how a client of mine that had gotten caught in this WEB of Loan Sharking to stay afloat. Here are some of the reasons why business owners fall into this trap:

1)?????FAST APPROVALS – Most business owners rarely plan their financial requirements early on. Thus, when they get into a financial bottle neck, they have no time to seek funding from legitimate financial institutions. Hence, they turn towards these Loan Sharks, thinking that it will solve their short term monetary issues.

2)?????NO COLLATERAL – This is something that is ‘Promised’ but rarely is implemented unless the company has very good Financials. However, most of the time it is something so simple that the Business Owner would agree to without hesitation like probably the Registration card of an old vehicle or even some stock of the business.

3)?????NO GOOD CREDIT REQUIRED – Most Business owners have been having these issues since the pandemic. They only need to ascertain that the borrower can pay the basic repayment as agreed and they will release the funds.

Now let’s take a look at what happens once you are in their clutches:

1)?????YOU CAN NEVER GET OUT – Once a Business owner goes into a loan with them, rarely would they be able to come out as the fine print keeps you owing more and more to them. There is an incident where a Business Man paid RM 6 Million back to a Loan Shark for a RM 2 Million loan, and was still not settled.

2)?????SHARED INFORMATION – All your Personal Protected Information is shared amongst their network and personal data sold to ready buyers. Once you have dealt with one you will have others harassing you.

3)?????THREATENED TILL YOU PAY WHAT THEY WANT – The worst part of these types of loans is that family members are threatened. They frequently visit the place of business of the borrowers resulting in terrified staffs resigning or clients retracting their contracts. Businesses are burnt to the ground in the event of Non-payments and not to mention The personal stress of the borrower and family members.

There are ALWAYS FINANCING METHODS to look at for a Business. Please consider these options more carefully or PLEASE TALK / COME SEE US / ME FOR FREE ADVICE on the Matter.

Please remember once you are caught in this WEB, it will affect not only you and your Business, but your Family as well. There are ALWAYS OTHER SOLUTIONS…

On a positive note, SKB has come up with KYCS, which is a comprehensive initial assessment of your company that helps you understand and discover your financing options. If you are looking for any kind of corporate finance, my advice would be to get your KYCS done first before ending up in the maze of loan sharks.

Best Regards Always,

S.Khugan