BIGGEST RISK with George Otel

J Darrin Gross

If you're willing, I'd like to ask you, George Otel, what is the BIGGEST RISK?

 

George Otel

The biggest risk when it comes to funding, is not looking for funding early enough, because the biggest risk is when people call me that they need funding yesterday. So it's I tell people you always have to look for funding, even if you don't need it, because when you need it, you may not find it where you may be. Tweaks. Expensive because of your situation. Let's say you got to look for funding when you're doing good, when you're doing great, because the lenders see less risk in you, because when, when you desperate, you you have a need your fire, fire you're burning, then that's a risk. So for the risk, they want to get more premium. So that's, that's how it works. The biggest risk is like, if, if you always got to look for funding, because it's you got to have funding options lined up, because you always growing. You're looking for equipment, you're looking for working capital, even lines of credit. We have lines of credit. So I tell people you rather have those lines of credit and not use it, then you need it and you don't have it, because that's that's another thing. So for example, there's a lot of loans do right right now for the there's a lot of balloons, though, and banks will like to when you approach them, like five, six months in advance to your balloon. You don't want to wait two months because it's too late. It's going to take two, three months to go to the process. So once the balloon is done, it's you're going to be in default. So it's because you got to refinance before that. So the biggest risk is not looking for funding early enough. And again, in good times, the banks, local banks, are really good. I love my local banks, but we are in uncertain times, a lot of volatility, and they don't like risk, so they avoid risk. Also private money lenders, they more risk. They have more appetite for the risk. And there is a small premium, and obviously it's worth it, because you'd rather pay a small premium and get your funding lined up, then have no funding option and be in a unpleasant situation. So also working with a funding finance broker like our company, because we have multiple options lined up. So basically, when the clients come to us in 1015, minutes conversation, initial conversation, we present them multiple funding option. We ask them about how they position their assets, the cash flow, how everything works. Then we present the Multiple option, because when you go to the bank, to to the local bank, they give you one option, and he said yes or no, but we have different options lined up. So if this one doesn't work, we're moving to the next and so on, until you get the funding and you getting the to the results you you need.

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