Let’s work with an example:
Before the global recession started a few years back, most banks were in great shape, and getting a loan to start a business (such as a sports betting operation) was not a problem at all; in fact, banks wanted to loan as much money as they could.
But after the recession began, it was very difficult to get a line of credit; it was like the banks were open, but they were really closed to any money-borrowing requests.
After doing some research on the matter, it is clear that the opinion of most experienced bankers is that it is better to borrow money from a bank before you actually need it. And back then, with the recession on the horizon, it is clear that this was a wise piece of advice to take.
It is a fact that many entrepreneurs (including bookmaking agents)out there whom were in need of money to stop their businesses from failing never heard of this savvy opinion from the people that knows more on the subject than anybody else.
These individuals, including bookie entrepreneurs, waited too long to ask for a loan because they didn’t needed the cash at the moment, but after the recession started, they were running to their local banks or making as many phone calls as they could in order to try to get their so much needed funds.
Indeed, it is needless to say that these company owners learned the lesson the hard way.
If Your Business is in Good Shape, Your Chances Improve
When a bookie company is in good shape, the owner of this given sports betting operation probably thinks that he doesn’t need to ask for a bank loan. It’s like, why trying to fix something that doesn’t need fixing, right? Wrong.
In fact, the best time to ask for a bank loan is when your bookie business is in the best of shapes. The reason for this is because banks actually prefer to lend to companies that show signs of good financial health.
Why? Simple: when they loan money, they want to get their cash back plus interests, and a bookie company that have cash is likely to pay back what it owes. In other words, they prefer to lend cash to businesses that are considered low risk.
On the other hand, when a bookie company is facing a difficult financial situation, banks see this company as to be of high risk, and its chances of getting cash are more difficult.
This type of bookie entrepreneurs are faced with a difficult choice: to let their businesses fail, or to seek alternative financing from lenders that will get them the cash they need, but with considerably higher interest rates.
Although, this sounds ironic, the truth is that most major banks operate this way.
Make Your Company Stronger
If your bookie business is experiencing high growth, asking for a bank loan that can allow you to strengthen your financial status is an excellent idea.
Right now, the global economy is starting to show some recovery signs, and this is precisely the perfect moment to ask for a loan because banks are starting to take greater risks by promoting new investment products.
Remember: If you wait to ask for a bank loan until you actually need it, chances are that it will be more difficult for you to get it, so, take advantage of the current financial opportunities available, and make your bookie company stronger now.