Do You Really Need a Banker?

Do You Really Need a Banker?

Why do I need a banker?

I am sick of politics. I am tired of politicians posturing. I am confused at living as the definition of middle class.

What is middle class? It is like the middle child, not as treasured as the first of the family, and not the last as the eternal baby that is coddled, but the one who has to carve out a niche to be brighter than the first and stronger than the last. It is the one that is independent and often is defined by the word Middle. It is the “middle pip”.

Middle Class is the small business owner, the one person service operation, the small manufacturing company, the down- the-road store owner. Many of these owners employ a number of people, but nearly always are dependent on the banking system, even if they have a healthy cash flow.

Middle Class is defined as the core of the economy, the backbone of the country, the salt of the earth, steady in their resolve to sustain their families in the American dream – a home and a full belly and send your children to college.

Small business is the key in politics. This is where promises are made and broken. This is where the bankers prowl and offer you the world, but give nothing. This is where it is the hardest to live and work because it is the biggest portion of the country.

Being a small business owner is very difficult. Usually one is happy to keep going at a pace that is comfortable, that you can afford, but there are times that one needs to borrow capital from a bank for expansion, short term loans or bridging finance.

Yeah, right.

You try borrowing anything from the banks today.

I sold a shipment of goods to a large reputable company, for which they gave me a Purchase Order with their payment terms that were net 30 days. I paid my manufacturer for half the order, the balance to be paid when the goods were delivered. I had the balance of the money tied up in an Annuity – yes, my own money sitting there and earning some interest!

When it came time to pay for the balance of the goods, I went to my company bankers with whom I have banked for many years, and asked if I could get bridging finance by giving the Annuity as collateral. You guessed the answer. No.

So I went to my personal bankers, who had set up the Annuity in the first place, and asked to borrow against the annuity for 45 days as a bridging loan. No. Really???

So I had to cash in the policy, lost $1800 on the deal (more than five times the interest that would have been paid for 45 days with bridging finance) and waited for the creditor to pay so that I could put the money back again. In my savings.

Probably should put it under the mattress and let it work for me when I need it to, get the profit, and then put it back under the mattress!

What on earth do I need a banker for? Can you recommend a good mattress?