to Self-employed: share business info get a loan?

Discussion in 'Business Operations' started by lawncuttinfoo, Oct 14, 2009.

  1. MSS Mow

    MSS Mow LawnSite Senior Member
    from Maine
    Posts: 448

    This is the concern. I have seen first hand banks using the "customer lists" for their own personal benefit, or the benefit of a family member or friend in the same business. On a similar note, also seen business plans turned down by banks only to have the very same business opened by bank bigwigs or family/friends. This, after the person applying for the loan was told the idea wouldn't work in our small community, AND after they had done all the market research, etc for the indepth business plan that the bank required!

    If the information was ONLY being used for the purpose intended, I wouldn't mind handing over a customer list. However, in a small town like what I live in, I couldn't afford to lose my customer base.
  2. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Perhaps this policy has lead many banks to a bailout that we get the pleasure of paying for.
  3. MarkintheGarden

    MarkintheGarden LawnSite Bronze Member
    Posts: 1,072

    If you have seen this first hand then your next action should be to see the District attorney first hand, and then you should be writing a letter to federal regulators. I am not saying that I do not believe you, but I would hate to think that this could go on. Even if a conviction is not possible, an investigation would send a healthy message to the local banking community.

    I do not think that who your customers are is such a big secret, your bank already has that information, who they are and how much they are paying you, and if someone at that bank wanted to steal that info, well it is already there. The good news is that it takes more than this to take someones business.

    In any case you can (and maybe should) do your banking and borrowing from out of town service providers, nation wide companies without an affiliate office in your area.
  4. ted putnam

    ted putnam LawnSite Platinum Member
    Posts: 4,539

    Not sure about that. My bank is a smaller bank with only 9 branches throughout the state. They received no "bail out". They have become more strict since all of that began though. Copies of tax returns, photocopies of drivers license, etc... each time I ask for money. It's a little irritating because I know they have all this info on file already but I also know they are being required to dot their "i's" and cross their "t's" more carefully these days.
  5. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Thats the point. Not your bank in particular, just banks in general. They are finally doing a better job, but look what it took for them to get it.

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