There Are No Guarantees in Life or Biz Life

 
It is one of the cornerstones of Free Market Economics:  There are no guarantees.  You have to make it happen through your efforts. Healthy competition in all sectors ensures that even the greatest company on Earth can be quickly humbled by the next small, innovative enterprise to come along.  The same goes with business financing.  Many business owners who need financing seek that money with some guarantee attached to the loan.  In essence, they want to know they will get what they are applying for.  Understandable as this impulse is, it actually is completely erroneous.  In most cases, the loan amount issued by the lender is based on careful analysis of the borrower company’s financials (tax returns and projections), sales figures, and overall stability.  Many times a loan will stall or not go through because the borrower has failed to disclose certain conditions affecting the business—like lawsuits, tax liens, or UCC filings.  These factors often dissuade a lender from financing the business until they are cleared up with the proper authorities.  The loan application process is put into place in order to separate truly qualified businesses from those that are not ready to receive financing.   Because of this process, there can be no guarantees in business financing.