The British Chef

One customer that we have worked with in the past was from the United Kingdom, and he wanted to open a restaurant in the state. Now, British food is horrible, but luckily the only thing British about the restaurant was the owner.

The owner was also the chef of the restaurant, and he was a very good chef for specific foods. He trained in both Italy and France and had learnt how to cook foods from around the world including Asian, Persian and even South American.

We usually don’t do this, but as he was a chef, we of course asked for him to cook some of us a meal so that we could understand a bit better what the product he is selling was. It is not unusual to ask for a prototype, but it is rare you ask a business owner of a service to provide the service for you. We just couldn’t turn down a good free meal.

Turns out, the chef was spectacular. He served us some of the best dishes that we have ever had, and since then we have gone to his restaurant to eat several times. There was an issue with his application that made it risky for us to lend to him, however.

While he wanted an ordinary business loan, we needed to provide him with business loans for bad credit instead. This caused some confusion in the office, and the customer was initially hesitant to accept the offer. They usually offer interest rates that are worse, and so the total amount repayable is more expensive.

However, it was the only option the customer had left despite which bank he went to. We decided to elongate the length of the loan rather than dismiss him completely. It took some convincing, but eventually it had worked out for everyone.

Lending outside of Ohio

The state used to be a lot more prohibitive when it came to the loaning industry, as many companies were acting closer to loan sharks rather than lenders. There was a period in Ohio where the overall interest rates were significantly increased throughout the board, and we are regretful to say we were one of the companies who decided to lend the same.

With so many businesses and personal customers applying for and begin accepted for loans that were far beyond reasonable, there was an increase in bankruptcy throughout the state. Despite what city or town, you lived in, there is a chance your neighbour took one of these loans and financially struggled because of it.

The practice had run rampant because the regulations didn’t exist before then, and once the state realised, they would need to begin regulating the lenders it ended up pushing too far. Loans were difficult to approve because the conditions for a successful applicant had become too stringent.

Effectively, us and fellow lenders had priced ourselves out of business. Many lenders had become increasingly aggressive in following late repayments, and existing customers from before the regulations were the only customers that many lenders had left. The desperation for customers paying on time had become surreal.

There were a few lenders that had decided to go elsewhere. It became so difficult for some lenders to continue business that they decided moving to another state was the only real option left. Many could not see a future where the regulations would be pulled back, and it became smarter to just begin again elsewhere.

Luckily, things are not as bad as they were for a while, and responsible lenders are now able to thrive and continue business. But it is important to make sure that as an industry, we do not allow ourselves to fall to that same level.

Club Entrepreneur

One of our most eccentric customers that we have had take a business loan was a night club entrepreneur, who had already owned clubs in various locations around the state of Ohio. He noticed that the clubs he had already owned were always full, and they often had to turn customers away as there wasn’t enough space for them to be let in.

Essentially, his clubs had to begin running a one in, one out philosophy. Whenever someone had left one of his clubs, then someone else would be allowed in. Usually, this practice is only common for clubs in big cities where they expect the crowd to become too large, but because his clubs had a special type of atmosphere customers seemed to love, it just continued.

Within the space of 9 months, he wanted to double the number of clubs that he owned within the state. He wanted to build and open a second club next to or near the already existing club that was becoming too busy. This may sound pointless, but the reason he built them next to each other was so customers didn’t decide to go elsewhere, and he could monopolize that area.

It was a very smart business model, but it came at a cost. The loan had essentially cost him $89,000 in overall interest by the time the loan was repaid. This is a significant amount, and many lenders will tell you it is rare for one customer to repay that much in a loan unless they are a significant company they are lending to.

Now, we knew that as he already had an existing business model, either way we would get our investment back. But we were pleased to see that he managed to open his clubs a month early and increase his profit margin by 213%. That is a ridiculous rate within the space of a year.

Loans for farming companies

There are many areas in Ohio that are farmland, and even more that are wasteland by some. Ohio is a massive place, and it is true that there is a massive agricultural market within Ohio. That does not mean that the state and those who live in it are only interested in farming, but this customer is someone who had a massive idea for the improvement of farming in the state itself.

If you have been to Ohio, it would be fair to say that the farming and agricultural industry is still behind of many neighbouring states and countries. The techniques are considered outdated, and the machinery and equipment that some continue to use is outdated too. Many farms need to update or completely upgrade their equipment and tools that they use.

This customer was a farmer who had realised that due to the size of his farm, and how much potential was still existing, he needed to upgrade. He needed his tools to be more efficient, he needed to hire people that would be more effective or specialized at their trade and make the farm more profitable.

So, he took a sizeable loan of $35,000 to upgrade most of his equipment, and farmhands who were aware of how to use the new equipment were kept on. Those who weren’t able, were let go and replaced with those who could.

What he essentially decided to do is update the farm completely. The harvests weren’t necessarily better, but the produce was. It was of a higher quality, and more plentiful. Now, most farmers know that just because a singular harvest is good, doesn’t mean the rest will be. It has only been one harvest since he opted for the business loan, but as we know the farm is already growing and more land is being purchased to produce a higher quantity.

Ohio Loans

Ohio Loans is one of the best companies in the world at business loans. We like to make sure that every customer knows exactly what they are getting, and as a lender we feel that it is standard within the industry. So many lenders do not care about the customers, as they see the customer themselves as a profit margin rather than a person. This is something that we want to avoid because we love our customers and we love our business.

We offer more than just business loans, however. We offer a total of 10 different business loans, but we also offer personal loans for customers who are looking to fund other things. Not every customer is a business owner or a potential business owner, so they will want to purchase other things. Without a personal loan, they may not be able to.

Within these loans there are short term loans, long term loans, pay day loans and others that may better cater towards the customers. Customers often want to start moving forward with their loan applications, so they are willing to listen to all options. But it is important to note that every loan is different so you need to make sure they cater towards you specifically rather than the amount they can offer.

Loans are very helpful towards a lot of customers, as it allows them to either invest into something that they would like to do, or it helps them purchase a specific item that they have been waiting to purchase for a long time. This makes it that much more important for loans to be reasonable. If the loan terms are not reasonable, then it is not the smartest decision to then apply for and accept that loan.

Make sure to check out more of our posts so we can detail which loans are good for you and why!