The Bank Is Not Your Friend: A Small Business Owner's Guide to Financial Survival During Good and Bad Times

Small business entrepreneurs are the salt of the earth and the mainstay of our country's economy. Whether their businesses have a few hundred thousand dollars or millions of dollars in assets, they almost always have to rely on banks and other lenders for loans. Whether they like it or not, they are a participants, in the commercial arena where the banks have numerous high-powered lawyers, who write their documents and collect their bad debts. Unfortunately, in most cases, the entrepreneurs are players in the game without legal advisors. In the author's experience while these entrepreneurs are highly skilled in their own businesses, a large percentage of them do not know how to deal with their bank and vendor creditors. They expect their creditors to help them with their financial problems and to act in good faith. They are shocked and dismayed to learn that the banks and vendors were only interested in getting paid and not interested in whether they or their businesses survived financially or were liquidated. Any small businessperson who has been through hard times can explain the difference in how their dealings with banks and other lenders changed from the beginning of their relationship to the point where they were near or in default of their loan obligations, or just wanted to renew their loans. Unfortunately, they "fell" for the pitch made by the banks' marketing programs in which the banks advertised that they were their customer's partner and friend. Sadly, they found out very quickly that the bank was not their friend. After all, "friends don't liquidate friends!" Hence the title of Mr. Small's book. The Bank is Not Your Friend attempts to level the playing field for entrepreneurs in their dealings with banks, other types of lenders and vendors by explaining in plain language how the commercial law and bankruptcy system works. The author guides the reader through the morass of commercial law and bankruptcy. The author includes numerous suggested strategies and real case examples. While the book is written for non-lawyers, it should be of interest and help to MBA students and graduates, accountants and to lawyers who practice in other areas of the law.