Almost every business can run into financial difficulties now and then. Problems such as tax debt, creditor demands, a temporary loss of liquidity, insolvency threats, salary superannuation shortfalls, short term capital to fund stock purchases or a need to consolidate business debt are just a few of the reasons why your business might require a short term funding solution, probably as fast as possible.
The temptation of an easy fix
In such circumstances, the banks aren’t always helpful and so there’s a temptation to look at the alternatives, like illegal lenders, sometimes known as loan sharks. It’s understandable because, at first glance, they might seem to be the easy answer to your major headache. They offer the appearance of speed, easy access and convenience, and, unlike conventional lenders, they tend not to be too concerned about whom they are lending money to, or why the money is required.
Good reasons to avoid loan sharks
Of course, raising money from a loan shark might seem to be the answer to all your problems although, in reality, it just adds to them. The number one reason is it’s very expensive to borrow from them – they lend you money at a very high annual percentage rate (APR).
The other major concern is the paperwork is likely to be very irregular in regards to rules and regulations. For example, rather than meet the standard regulatory rules, they are prone to including deliberately confusing or misleading terms.
Loan sharks will often try to hide a number of hidden clauses that don’t make it obvious you are paying rates up to 1.5% per day or more. Interest rates are equally alarming – they can be as high as 400% with more additional charges on top.
From bad to worse
Many loan sharks may also be unwilling to settle your debt and since they generally operate online, it can be next to impossible to reconcile disputes because they are almost impossible to pin down.
If there is a dispute, there are many horror stories about the unethical practices loan sharks will resort to recover a perceived debt. There are countless stories about blackmail, threats of physical violence, or pressure to obtain a new loan to pay off the existing one, leaving you even further in debt and more stressed than ever.
The recommended alternative
It’s easy to understand how business people under stress don’t necessarily seek out all their available options. They may be rejected by their bank and go into panic mode. In reality, there are highly respected specialists available, such as Corporate Guardian (part of the Jirsch Sutherland Group, established over 30 years), who understand how to deal with short term financial issues, will safely guide you through a difficult period, suggest the right solution for you and the best strategy to put you back in control.
What loan sharks can’t provide
Corporate Guardian can offer you and your business the loan features you really need:
3-6 month loan terms
Fast turnaround – 24/72 hours
No upfront costs
No monthly repayments
Capital and interest repayment total concluded at end of loan period
Beyond the loan, we back all this up with ongoing consulting and support services and the resources you need to optimise your future. None of which are available from a loan shark, needless to say.
Almost every business can run into financial difficulties now and then. Problems such as tax debt, creditor demands, a temporary loss of liquidity, insolvency threats, salary superannuation shortfalls, short term capital to fund stock purchases or a need to consolidate business debt are just a few of the reasons why your business might require a short term funding solution, probably as fast as possible.
The temptation of an easy fix
In such circumstances, the banks aren’t always helpful and so there’s a temptation to look at the alternatives, like illegal lenders, sometimes known as loan sharks. It’s understandable because, at first glance, they might seem to be the easy answer to your major headache. They offer the appearance of speed, easy access and convenience, and, unlike conventional lenders, they tend not to be too concerned about whom they are lending money to, or why the money is required.
Good reasons to avoid loan sharks
Of course, raising money from a loan shark might seem to be the answer to all your problems although, in reality, it just adds to them. The number one reason is it’s very expensive to borrow from them – they lend you money at a very high annual percentage rate (APR).
The other major concern is the paperwork is likely to be very irregular in regards to rules and regulations. For example, rather than meet the standard regulatory rules, they are prone to including deliberately confusing or misleading terms.
Loan sharks will often try to hide a number of hidden clauses that don’t make it obvious you are paying rates up to 1.5% per day or more. Interest rates are equally alarming – they can be as high as 400% with more additional charges on top.
From bad to worse
Many loan sharks may also be unwilling to settle your debt and since they generally operate online, it can be next to impossible to reconcile disputes because they are almost impossible to pin down.
If there is a dispute, there are many horror stories about the unethical practices loan sharks will resort to recover a perceived debt. There are countless stories about blackmail, threats of physical violence, or pressure to obtain a new loan to pay off the existing one, leaving you even further in debt and more stressed than ever.
The recommended alternative
It’s easy to understand how business people under stress don’t necessarily seek out all their available options. They may be rejected by their bank and go into panic mode. In reality, there are highly respected specialists available, such as Corporate Guardian (part of the Jirsch Sutherland Group, established over 30 years), who understand how to deal with short term financial issues, will safely guide you through a difficult period, suggest the right solution for you and the best strategy to put you back in control.
What loan sharks can’t provide
Corporate Guardian can offer you and your business the loan features you really need:
3-6 month loan terms
Fast turnaround – 24/72 hours
No upfront costs
No monthly repayments
Capital and interest repayment total concluded at end of loan period
Beyond the loan, we back all this up with ongoing consulting and support services and the resources you need to optimise your future. None of which are available from a loan shark, needless to say.
