I was meeting with a prospect and was reviewing their financials. Their business did not appear to be so successful; it had not made money for a number of years. Their personal also was bereft of income. Not the likeliest candidates for a bank loan.
But when I was discussing their situation they mentioned that they had just refinanced their house. It was my understanding that the days of suspicious or bad bank loans were a thing of the past. Apparently I was incorrect.
So from the scant evidence I had seen, the prospect had minimal income for at least the couple of years. Basically they earned enough to cover the mortgage only and were still able to refinance their home. The personal return did not have large interest of dividend earning so there were no large reserves to guarantee the loan.
With this information the bank the bank issued a new mortgage for this prospect. So I am advising all people in need of cash and a not so great track record to go to this bank. I am just thankful I do not own their stock.
Clients should contact our office for the bank’s name.