Bank to Bank

BANKS vs BANKS

The coming months will bring us all kinds of predictions, projections, and speculations on how the markets will bloom to 30,000. The reason being the easing  of financials, energy deregulations and the raising of interest rates. The major banks are rubbing their hands together and can’t wait until changes come into effect.

However they have one major problem ONLINE BANKING. Online banks have been around for years and has grown extremely fast in the last ten years. These banks have taken a big bite out of the brick and mortar traditional banks. Online banks just need a computer, telephone, and a small office. The estimated loans that are done on line is over 100 billion.  It’s taking a big bite out of traditional banks and they are lobbying intensely for deeper regulations for online banking to slow their growth

What’s really has gotten under these financial bankers fingernails for the past ten years is fair monetary policies and academic systems in place to stop the free range percolation of the markets.

Another thing that has these profiteers  jumping for joy is the anticipation of the lowering of the corporate taxes.  The current corporate tax rate is 35 percent and most of these robber barons are dreaming for a 15 percent tax rate. The seventy thousand manufacturing companies that have their companies park overseas along with their money have been paying other countries 15 percent taxes and some countries as low as 12.5 percent. The estimated dollars that’s parked overseas is around three trillion and another trillion of private U.S. citizens money. Believe me those funds has its tentacles  in everything you can imagine including ONLINE BANKING.  

The access to CAPITAL is a buddy buddy plan you scratch my back and I’ll scratch your back. Fifty years ago America was on a gold standard and credit was extremely hard to come by.  We are a capitalist country and its main objective is profits. What that really means is that if a bank or investor invests in your company, the investors want to know what are your projections on your P&E profits and earning ratio. There are literally thousands of companies that will keep putting truck loads of cash in companies the investor believe that they would get a high return on their MONEY.

Here is the rub of the matter ONLINE BANKING is another way of fueling  immediate cash in your business but there is not a personal relationship.  ONLINE BANKING is a tool that can be used to help you on those down months. The terms are bogged down with using assets as collateral along with higher interest rates and you don’t know who you are really dealing with.

Bottom line is, if you are planning to start a business or you are currently in business. The number one thing is start reaching out to financial bankers and investors and build those relationships. Because you will always have those deep pockets that believe in your vision. They can always give you another round of cash to help you stay afloat until your profits and earnings get up to standards.