QUESTION OF THE MONTH Hot topics
HOT TOPICS
Q
Would you ever consider using a payday lender as a last resort to save your business?
Each month we ask a selection of business leaders their views on an aspect of business. This month, we’re asking about the divisive issue of payday lenders
Personally, I would never use a payday lender for the business. I am in the camp who have serious issues with regards to the lending ethics of such organisations. For any business owner, funding your enterprise is a critical consideration. Nowadays there are many strong peer-to-peer lending sites around, which are there to support businesses on fair and reasonable terms (should your banks not be able to). VIKAS SHAH, OWNER & CEO OF SWISCOT GROUP
Payday lenders are licensed loan sharks, and I would rather shut up shop than make things worse by using them.
THE NUMBERS GAME Here's what the rest of you thought: Yes, I’d use a payday lender
21% 79% No, I wouldn’t even consider it
ARNAB DUTT, MANAGING DIRECTOR OF TEXANE
My first instinct is to say no, I would never use a payday lender, as they almost inevitably stall a problem rather than solve it. But thankfully I’ve never been in a position where the future of my business depended on a payday loan. If I am forced to imagine a scenario where all my hard work is about to come crashing down, a fight or flight moment, then maybe I’d be forced to think differently. NICK LAHEY-BEAN, OWNER OF ABACUS REAL ESTATE
No, the prohibitive interest rates would cripple the business. A more sensible source would be 0% interest credit cards, but only for a very short term. BECKY CLARK, CEO OF NETDESPATCH
Payday lending has eye watering APR’s, but those are a yardstick for long term lending, and for a very short term cash flow injection they could be a solution for very short term funding. I would only consider it only if repayment was cast iron and no other options were available. WILLIAM BUIST, FOUNDER XTEN CLUB AND ABELARD CONSULTING
NEXT MONTH:
We ask readers “Is it ever okay to use sexuality to close an important deal or make a sale?”
20 October 2014
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29/09/2014 15:40