When I first started my business a number of years ago, I went to a bank, trying to get a small business loan. Here is part of the conversation I had with the banker in his office.

Banker: How are you? You need a loan to start your business, right? Me: Yes. I need your help.  Banker: Let’s fill up a application then. What is your annual income? Me: Income? Did I say I am starting up a business? Banker: Oh.. what is the current value of your house? Me: House? That should be after getting some income, right? Banker: Oh… what is total balance of all your banking accounts? Me: Balance? That is what I need, not I have. Banker: Oh…. then do you have other assets….like a car or stock? Me: Yes, I have a car. Banker: How much you think it worth? Me: I bought for $300, probably still worth 200. Banker: You have nothing, why do you come here?

He stood up from his chair and walked away before I had a chance to answer his last question.

bank

Five years later, the same banker walked into my office, trying to sell me some commercial loans. Apparently he didn’t remember me. Here is part of the conversation I had with the banker in my office.

Me: How are you? You want me to buy some commercial loans from you, right? Banker: Yes. I need your help. Me: Let me see what kinds of loan you have then. Do you have a loan with zero interest? Banker: Zero interest? Did I say I am trying to SELL you a commercial loan? Me: Oh.. Do you have a 1% interest loan? Banker: 1%? That’s lower than what we get for. Me: Oh… how about a 2% loan? Banker: That’s still lower than what we get for. Me: Oh…. then what is the lowest interet you have? Banker: About 5%. Me: 5%? Why should I buy from you? I can get from myself for less than 2%. (Note: that’s the interest I got for deposit.) Banker: You don’t have to use your own money if you get a loan from me. Me: Alright, that’s what I thought 5 years ago.

I stood up from my chair and walked away before the banker had a chance to pull out an application.