If you are doing business you most likely would need credit at some stage.
Unfortunately, with the multitude of paper requirements, security obligations and the high interest rate of bank loans, taking a credit is not always an easy task – especially for a small to medium sized company. Even after you take credit there is the problem of how you are going to pay back (this can be particularly difficult during the initial days when the business is not at its best and is still developing). The main problems in getting a credit are:-
1. Too much paper work, security deposit and guarantor: getting a loan from a bank can be a big hassle. There is too much paper involved. Even in case the paper is not much you need something of value that the bank will be willing to give you a loan against. Finally, the question comes who will be your guarantor? Who will be willing to bet on your success?
2. High Interest Rate: These days due to the unstable economic condition the interest rates are very high. Even if you have all the necessary paper work and the bank is willing to approve your loan, is it good to take loan at such high interest rates? Wouldn’t it be better if there was some other way you could complete your financing issues.
3. Repaying the loan: repayment of loans can be very difficult in the initial years of business which might negatively affect your credit report and make it difficult for you to get further credit to keep your business running smoothly. Also, it effects your business reputation.
4. Stress and worry: taking a loan can be stressful as there are too many formalities. Once you have taken the loan you stress over repaying it. Repaying a loan can be a big source of stress. You are always worried about how you will repay the loan.
All the above mentioned reasons tell us why taking a loan or finance from a bank can be difficult. However, what is the alternative to it? Where else can you get the money to get the resources to setup a business or in some cases to keep the business going?
The answer is barter. What if you can get the things you need for your business without spending cash by using your existing spare time or surplus capacity and trading it for the things you need?
Copying and distributing this article
Ormita provides free updates about the generic benefits of barter to those interested in local currency, community currency, countertrade, reciprocal trade, barter exchange, time dollars, hours and other forms of community trade vehicles.
You may freely copy and distribute this article provided that you attribute the author and/ or source as the Ormita Commerce Network.
About Ormita
The Ormita Commerce Network spans 5 continents, with direct representation in more than 17 countries plus additional partnerships in a further 59 countries. The business allows companies to exchange goods and services on a reciprocal trade arrangement.
Some of our Websites
Ormita Commerce Network Australia – www.ormita.com.au
Ormita Commerce Network Canada – www.ormita.ca
Ormita Commerce Network India – www.ormita.co.in
Ormita Commerce Network Mexico – www.ormita.com.mx
Ormita Commerce Network New Zealand – www.ormita.co.nz
Ormita Commerce Network United Kingdom – www.ormita.co.uk
Ormita Commerce Network United States of America (USA) – www.ormita.com
For Licensee, Franchise and Partnership Enquiries please visit : www.ormitacorporate.com
