We all have read about the current crisis in the mortgage markets, especially in the US and here in the UK. This is based on the reckless behavior of many banks, driven by greed and not good business sense to lend money to house buyers who could not afford the mortgage. Needless to say small business will have to pick up some of the “tab”.
In the last few weeks I have received disproportional more emails with questions centering around banks demanding loans or overdrafts back, while the trading gets tough out there. It saddens me to read these stories of hardship, as you can read between the lines how much these micro businesses mean to my readers.
What I find especially upsetting is the fact, that banks often cancel these loans and overdrafts, not because the small business is doing anything wrong or different then before. No it is because they just need as much of their money back so they can fulfill their own obligations. What is different about this recession is that the banks caused this downturn in the first place.
Here is the thing, my readers are being told that they are a risk and therefor need to repay the money or simply being told to change bank. While the banks themselves are the ones who have behaved reckless and are the current risk for our economy. But what can we do about this problem?
Next time you need to buy a service or product have a look out for a small or micro business, support businesses like your own. ST.