Too many times when we are faced with a curveball in life and we get thrown off course, we simply give up. I have heard countless stories of individuals who believed they had everything in place to start their dream business venture all to have it taken away because of a hiccup.
Perhaps they were in the beginning stages of their start-up company only to hit a speed bump, and this led them to panic, to not think things through, and in the end, had everything crumble down around them. All those years of hard work and planning have gone in the blink of an eye.
If you are finding yourself in what seems like a similar situation, my advice would be to you to remain calm. Take a step back before making any permanent decisions and assess the problem for what it is, more often than not the solution revolves around or requires of money, and this is not something unattainable as many people tend to think right off the bat.
Taking stock of what exactly is happening at the moment is going to help determine the best solution moving forward, breaking it all down into different categories and seeing which needs your immediate attention.
In the beginning.
You and your girlfriends would often sit in the middle of the playground at lunch and chat about what type of businesses you would be running one day, each detailing their creativity into the products and services you want to offer and how you were going to do it.
As each person took their turn, feeling the love and support from the circle of friends basking in the sunshine, no dream and no goal was out of reach. Or so you thought in the present day, the moment in which you find yourself.
Graduation day came for all from the respective universities and it was time to head off into the big world to make that once dream chatter become a reality. You had spent countless hours, days, and weeks drawing up and setting plans into action for the new boutique shop you wanted to build and open on the high street in time for summer.
Finally, the day arrived where it all sprang into action. Contractors, diggers, builders, and tradesmen as far as the eye could see arrived on site ready to tackle their assigned tasks, the butterflies were on full force in your stomach and if it weren’t for the excitement of the project taking off you may have been sick. Nevertheless, the big day was upon you and there was no turning back.
Stage 2.
A few months have passed, the shell and most of the internals are complete on your project and all it needs is that final push to get you across the finish line. You feel stressed as would anyone embarking on such an adventure, but eager to set up shop and get the ball rolling.
Your close-knit circle of friends has also made a mark on their respective industries opening their little corner shops or creating the product that they believe will add value to peoples’ lives. As it all seems too good to be true you simply keep your eye on the prize.
But then you are hit with a harsh reality you didn’t expect, and you get that sinking feeling in your stomach. Unforeseen expenses popped up, extra materials were purchased, and without you taking note it seems that the money flow is coming to an end. So much so that the final push to bring it all together is now out of reach if you don’t get some financing soon.
After a few days of back and forth pacing and defending off questions and queries from all angles, you decide to lay it on the table with your friends who have been through thick and thin with you to see what they make of the situation.
What blew your mind was hearing that they too were looking for financial aid but were not a big enough corporation to get a substantial loan on their own, and so the subject of a group loan was broached.
You discussed it in as much depth as you could and decided to go for it, to get a samlelån or “group loans” and to do so as a ‘team, a family who you can always count on.’ This way everyone wins, all dreams are kept alive and well, and the world is still a great place to be an entrepreneur with a vision.
Knowing you all have each other in mind when taking out a collective loan shows responsibility and awareness for each other, but also love and care and believing in each other and the goals we wish to achieve.
Bringing it home.
First things first let us understand what does it mean to take out a group loan as such and why it can be beneficial to small business owners. Essentially to be considered for a group loan a few factors need to be met, the group should consist of a minimum of 3 willing participants, each person owns and is involved with a small company that brings in an income, and that the aforementioned businesses have been operational for at least 3months.
So why does it work for small brand entrepreneurs? We will break it down into the top reasons some of the successful applicants have commented on.
- Guarantors. This is one of the perks of this arrangement, the people responsible for paying for the loan in the event you cannot are the same ones you take responsibility for should they not make payment. You each look out for each other or everyone goes down.
- Collateral. Using assets or property leases as a ‘backup’ is what’s used for the generic loan system, they use the home as the payment method should a default occur on the monthly repayment. When going in as a group this factor is eliminated and which makes it that much easier to get accepted for.
Many options are available for collateral, some of which you can read up about here https://www.investopedia.com/terms/c/collateral.asp, and see a more technical version of the explanation in the event it is still unclear what you are getting yourself in for.
- Simple. As everyone is on the same page and basically in the same boat there is a mutual understanding of the process which takes the complexity out of things. Thus the process is quick, simple, and effective for all parties involved.
A group loan has made many entrepreneurs the big corporations they are today, by simply getting a helping hand at the point where it could have all gone down the drain, they turn a bad situation into an unforgettable positive.
Not only do they have the story to tell and live by each day, but knowing they helped someone else out too in the process makes it so much better. We all deserve a chance in life to make something of ourselves and any ideas we may have, whether on paper or in the pipeline and if a humble group loan will do that for you then you should go for it.