Bummed out...literally

[wolf]

Entrepreneurship is not attractive to banks. I have a friend here who is unable to get a loan for his own beginning business venture. He has significant savings. He owns his home. He has plenty of collateral. His business plan is sound.

Why isn't he getting the loan?

He doesn't have a current paycheck.

[Troubleshooter]

Originally Posted by wolf

Entrepreneurship is not attractive to banks. I have a friend here who is unable to get a loan for his own beginning business venture. He has significant savings. He owns his home. He has plenty of collateral. His business plan is sound.

Why isn't he getting the loan?

He doesn't have a current paycheck.

I can top that one...

I owned a gaming store back in '94 and I was needing a small, $40,000, loan to do a move and expansion. I had been open for a year, was almost operating in the black already and, here's the kicker, $16,000 in gold as collateral. They said they weren't sure of the store's long term viability and that they didn't want to have to worry about converting the gold to cash should I default...

[Beestie]

Originally Posted by wolf

He doesn't have a current paycheck.

He has one for the next week or two. He's not obligated to disclose what's about to happen.

[wolf]

Unfortunately in this case, the loan officer at the bank is a person friend of said friend, and therefore knows that they "current" paycheck is also the "last" paycheck. You'd think that the loan officer knowing he is sturdy, reliable, and able to deliver on his plan would carry some weight in the decisionmaking process, and while it would have 30 or more years ago, now amounts to precisely nothing when the computer goes over his application.