1.10.20 Small business loans are fraught with pitfalls; Clark Stinks

The Clark Howard Podcast

Clark Howard

Investing, Entrepreneurship, Business

4.6 • 5.2K Ratings

🗓️ 10 January 2020

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

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Summary

Since the Truth in Lending Act does not apply to small business, instant loans to small businesses is a major rip off area around the country. There’s no requirement to disclose junk fees or interest rates on these loans. As a small business owner, Clark receives about 10 offers a week. Though there are ethical lenders, there are too many bad players out there taking advantage of small business cash flow needs, charging gigantic interest rates for quick money. If you’re a small business owner, do NOT bite on these loan offers until you know the fees and rates. If you can’t get a straight answer, stay away. While Congress lies about how much they care about small business, they ONLY care about their corporate contributors. Nobody’s looking out for the small business owners, with no laws governing proper disclosure of loan terms. Also, the Supreme Court ruled that states can charge sales tax to small businesses selling across state lines online. For big retailers, that’s no big deal, but for small business, compliance is a nightmare. They need a simplified tax procedure in place governing online sales below a designated threshold. Candidates should come up with real agendas for small business. Big company lobbyists feeding in cash are the only ones heard. When can we get leaders who represent the people of the U.S. in the people’s White House? Christa reads listener posts about how Clark has missed the mark in his advice this week. If you have a "Clark Stinks" to share you can leave it here. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	I'm so glad that you're here with us and I get the pleasure to welcome you to the Clark
0:11.1	Howard Show where it's all about you getting the ideas, the knowledge, the information,
0:18.0	so that you can save more and spend less and avoid getting ripped off.
0:23.2	It's being a rip-offs if you ever feel that I've ripped you off, that's what's coming
0:27.3	up later is Clark Stinks.
0:29.6	Or you get to hear where people feel I gave bad information, bad advice, or just have
0:36.6	like a hole in my head or something.
0:38.8	So I hope you'll tune in for Clark Stinks coming up later.
0:43.7	Clark.com is our main website and we have our deal site, our bargain site, it's called
0:48.3	ClarkDiels.com if you like to save money.
0:52.9	I want to talk about something that I've been on a burn about for a while and it's that the
1:00.2	Truth and Lending Act does not apply to small businesses.
1:05.5	So one of the hottest rip-off areas in the country now are people who rip off small business owners
1:14.9	with instant loans. And so there's no requirement under the law that a small business owner
1:23.8	be told what junk fees are going to come with a loan or what interest rate comes with it.
1:29.7	And I get as an owner of several small businesses, I get at least 10 offers in the traditional
1:42.0	mail, you know, snail mail coming from the post office, I get at least 10 every week from
1:49.1	these lenders that specialize in lending to small businesses. And it's something it could have
1:54.1	been a good thing. And there are people in it doing it right. But unfortunately there are too
2:00.8	many players out there who are taking advantage of the need for cash of small businesses and charging
2:09.3	effective interest rates that are gigantic for having money available in minutes, hours, or days.
2:18.8	So here's the thing. If you are a small business owner and you're getting these solicitations
	...

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