There used to be a bank in the Netherlands called the Dutch Bank for Small & Medium Businesses.
But the locals called it the “Dutch Takeaway Bank” because one of their tactics was to suddenly call in the entire principal of a loan.
If the business didn’t pay up the entire loan immediately, something very few businesses can do, they’d be foreclosed on and driven out of business.
Then, the bank would buy up the remainder assets in subsequent bankruptcy proceedings.
After selling enough assets to cover the principal, this heinous bank would sell the remainder assets for more profits.
It was a very nasty practice.
The same destructive practice has been uncovered recently in the UK by the RBS bank.
Don’t ever make yourself dependent on a single bank. When times are tough, they will protect their interests even if it means the total destruction of all that you have built.
A great way to get around these vultures, is to have lots of loyal customers.
Loyal customers buy often and generate strong cash flow that keeps your business in a strong position.
RewardCamp is the best loyalty app to build your base of loyal customers. Check it out at www.rewardcamp.com