Jul 11

An Open Letter To Entrepreneurs’ Seeking Bank Loan

loan image


Business is constantly and consistently dynamic and in its constant movement seeks the part to prosperity since it’s the only way to survival and increase. As an employee, our dream is always to move out of the rat race and be independent i.e. to gain freedom by going into the business world.

            Is it not ideal?

              of course it is

Afterall every master was once a servant and the earlier the better.

Nobody wants to exchange his/her problem for a fellow. Many small scale businessmen are also looking at working class as better people than them because they have what they called “REGULAR SALARY” which makes them to be more secured and they have access to what many people do not have access to which is “CREDIT FACILITY”.

            But what do they use this facility for?

In most cases to acquire “LIABILITY” which they otherwise think is an “ASSET”.

Many businesses have remained the same for a long time without moving forward because of loan. This stagnation has sometimes leads to the failure of businesses.

However, some have used it to their advantage and it has lead to business success. There is no doubt about the fact that the more money you have, the greater the opportunity of winning in business contests but adequate knowledge must be in place to spend the money judiciously.

We need to know the “PARABLE OF MONEY” to work in our advantage and not to our disadvantage.

Afterall, doing business is like engaging in a fierce contest, its either you conquer or you’re conquered.

No pity.


I think it was Henry Ford that says

God plays dice with the world and they are loaded dice

to win in the game you have to learn the rule and apply it; if you do, you will be merciful and if not you will be at the mercy’.

A bank is a place where they lend you an umbrella in fair weather and takes it away from you when it’s raining’ – Robert Frost.

We are all in business to make money. Nothing can be farther from the truth. The banks are good in handling money that’s why they are called financial institution. Just like tertiary institution; they know all the rules that works and they apply it. Obviously they won’t tell you because if they do, how will they make it?

They have been trained extensively on how to lend people money when its sunny and take it from them when it’s raining.

How can you fathom a closed friend of you leaving you when you needed him most? The popular saying goes that a friend in Need is a friend Indeed.

But they do the opposite.


I think there is a duty to employ our thinking tool to our financial situation. There must be a reasonable level of understanding in order to succeed in this world financially.

Have you ever asked yourself these questions

  • Despite all the buoyant services they give you, where do they get the money to pay their salaries?

  • Where do they get the money to pay for the emolument & bills?

  • Are they running a business or charity organization?

After this, we can come to the conclusion to justify action.


To him that has, more shall be given and from him that has not, even the little he struggles to get will be taken away from him and given to him that has.

This life is so ironical to the extent that many things we consider obvious becomes less obvious when we start studying nature. According to John Ray “A man in debt is caught in Net”. Isn’t it true? Please let’s ruminate about it because He that always asks for loan is always left alone.

If you want to test the validity of this ask your friends some sizable amount of money, you will see how they will react unfriendly not because they don’t love you but because everybody has money problem.

The society is so funny that wealth moves towards the wealthy and flee from the less wealthy. It moves towards those who do not even need it and moves away from people that are in serious need of it.


Sometimes ago, there was a news going on in the society about the mogul of our time owing some banks exorbitant amount of money. Many of who are financial movers & shakers of our generation. Many of the poor & middle class were very happy and that nemesis is catching up. Some even went as far as dancing and jubilating anytime the issue is discussed in the news.

I look at them and laugh in French. I told my friend among them that don’t you know the rich peoples debt is paid by the poor?

He said how?

I then gave an instance that Dangote is owing but he would not be the one to pay for it. Any moment from now Rice may jack up in price, noodles may rise up in price, cement will cost a little. The concentrates in granulated sugar might reduce and we would have to buy more to satisfy our taste.

Who is paying the money?

Is it not the masses?


Our act can never be wiser than our thought and our thought can never be wiser than our understanding.

There are only two categories of debt:


Unfortunately, this is not taught in school.

GOOD DEBT: Despite the fact that we want to go away with debt of any kind. There are some debts that are good. A debt that will pay itself or others paying it is referred to as GOOD DEBT. If you are not the one to pay the debt directly then it’s a good debt. This category of debt is used to acquire assets & not liability.

This can be a debt acquired for expansion of an existing business or to perfect a transaction that is certain to be repayed.

BAD DEBT: This is a debt acquired that the beneficial has to work for it before he could pay it. It is a debt owed to acquire a liability at the expense of the asset. This is common among employee’s and self employed people. In a situation whereby an employee needs some appliances or Automobile and cannot buy at the moment with cash will be given at an installment rate over a period of time.

Any debt that appreciates is GOOD DEBT, but a debt that depreciates is called BAD DEBT. Many of the things acquired like appliances, cars are liabilities because they cannot appreciate in value. If you want to test the validity of my claim. Just buy any gadgets today and decide to sell it a week time, you will realize how it will depreciate in value.

This happen because technology is continually upgrading and what’s in vogue today might be out of date tomorrow.



Our wealth as a nation depends on the individual wealth of people living in that nation. Successful entrepreneur makes their money when they BUY and not when they SELL. This is why Proper Planning must be put in place.

You must succeed on Paper before you can succeed on the field.

ASSET:- is anything that brings money into your pocket and appreciate in value. Simple.

LIABILITY:- This is anything that takes away money from you and depreciate in value.

Everything we do and buy can be categorized in either of the two. Nothing else.

All our possessions can become asset or liability to us depending on our financial knowledge.



What happen to poor finance manager during economic doom. The money will rearrange itself to the beckoning hand of unstoppable people. Either in economic boom or meltdown, the rich becomes richer why?

Because they have learn the parable of money. There are many reasons for loan procurement. Most of which are not genuine

(a)        IMPATIENT: Many business people are not patient enough to read their market very well. The law of least effort is applicable to every business. 80% of your profit will come from 20% of your products/services.

Many do not know this and they concentrate their resources on 80% of the product that yield only 20% of resources and as such waste a lot money when the product that could yield them the most profit comes, they are stranded.

(b)        POOR SAVING HABIT: The reason why you need a loan is because you have not been saving enough. I remember the saying of Richard brandson. The owner of virgin empire that goes “the pounds my people want is inside the penny they do away with”. The money you save today will come back to save you later.

(c)        LACK OF INVESTMENT KNOWLEDGE: Business takes time to grow. It’s just like growing an awesome tree. Many people love to stay at the top of a mountain but they are unwilling to climb. Many business models are just a scrap. They are me too business. They jump into the business without prior knowledge of the business which later leads to investment mistake.

If a man of experience meet a man of money. The man with the experience end up having the money and the man with the money end up having experience – often bitter experience.

Do your homework well.

(d)        POURING OLD WINE IN NEW WINE SKIN: many businesses out there are just business as usual. If you offer a me-too product you are on your way to obsolescence. New day require new ways of doing things. All you need to succeed in your business is an idea that is 10% new that people can buy with ease.





  1. Unnecessary stress – STRESSED spelt back word is DESSERTS. You multiply your problem by securing a loan. Rather than climbing the ladder of prosperity, you are digging a hole of stress. What you will have to return first is the owners money before the interest pile up.

  2. A life devoid of serenity – Lack of peace of mind will soon cut the life short. what you actually use the loan to procure can be gotten through savings with time. That will even teach a valuable lesson in patience. You cannot die if you don’t seek loan.

3. Starting from Negative Ground- Instead of starting from ground zero which is the normal ground, you are starting from negative ground. You will have to reach Zero first before you can be in positive side


   4.  You might continue to work for the rest of your life to serve the person who save – A borrower is a slave to a saver. You are a slave in your own world. The person that does not have and do not borrow is better than that which acquire and owe.



  • Dream Big But Start Small: There is a reason for slow growth in nature. God has the capacity and capability to create a child in a day and look like a 20 year old child. But he doesn’t do that. He is teaching us a lesson in perseverance. Every natural Growth is slow in process.


  • Seek for Loan of No Interest: If you have access to some loan that has no interest and you know how to formulate your way to repay it. By any means you can get it provided that you want to use it to acquire ASSET & NOT LIABILITY. This is a kind of good debt that can repay itself. Or if possible do away with it.


  • Don’t buy the things you don’t need now with the hope that you might need it tomorrow: He that buys what he does not want will soon want what he cannot buy. The reason for this is to have the opportunity to grow more reserve. Remember the more reserve you have, the more you are served by others.


  • Seek for Grant: Many philanthropist sometimes do award Grants for profitable business idea. Google is your friend, search for it and read books on haw to answer questions on grant. Then you take action. This is by far better.


  • Don’t Lend Co-operative Money: If you lend Co-operative money to acquire liability, you are a fool. That means you are bringing to the present the enjoyment of tomorrow. You are eating an inheritance at infant and they will not take it easy with you. Someone define co-operative as co-operate thieves. The money they borrow you is their own source of investment as well.

Nobody gets rich this way. Have you ever heard it in history of the world’s billionaire that get rich through Co-operative?

Having known all these points discussed above. We will known that having financial i.e. is very important to our financial success. Many people reading this might be wondering that many Nigerian Millionaires that we heard their name either started with loan or inherit the wealth. Aliko Dangote made his wealth from an opportunity money lend to him by his father in – law (Dantata). But the truth of the matter is out of ten of them that started like that then, how many do you hear about again today? That means a lizard in Nigeria can never turn to a crocodile in America Nothing is always enough for a fool. If you don’t have financial intelligence, no matter the amount of money bestowed in you, you will squander it.

And we have many silent millionaires that start from scratch and reach limelight.

Must we continue to follow convention? Afterall jumping at several small opportunities will take you there fast than waiting for one big opportunity. Always ask yourself this question.

If I have not get involved in this business, knowing what now know about this business, is it justifiable enough to borrow the money?

With any experience & knowledge in this business, is it profitable enough to go ahead with it or I should change it.

If I have not get involve in loan procurement before, knowing what I now know about loan will I go ahead and commit myself?

Let me hear your view on this!



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A Writer, Serial Entrepreneur, Difference Maker

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