Beware: Loan Sharks are Targeting Your CNC Shop
As a business owner, you probably receive unsolicited calls and other contacts from people who want to sell you something on a daily basis. Lately, you may have been inundated with robocalls offering quick and easy access to lines of credit. Many sound like this: “I’m calling to follow up on the offer we sent to you for a $500,000 line of credit…”
If you think the offer sounds a little fishy, there’s a good chance you’re correct. Many of these calls are from predatory lending companies that charge exorbitant fees and finance charges for these loans. If that’s not bad enough, some have fine print in the financial agreements that give them the right to seize the assets of your business if you fall behind in repaying the loan.
Fact is, small businesses are not entitled to the same protection from these modern-day loan sharks that we enjoy as non-business consumers. There is no national truth-in-lending law for small business owners. This means there is no clear legal requirement for lenders to disclose all of the terms and interest rates associated with a business loan.
As a result, a number of small businesses have been destroyed by predatory lending. That’s why it’s so important to only deal with trusted banks and suppliers that offer financing for your CNC shop, and to have your lawyer examine any loan agreement from other sources.
Gosiger has long provided financing options for CNC shops that want to expand capacity or improve productivity with the latest manufacturing technologies. For more information go to Gosiger Financing or contact your local Gosiger facility.