Two famous men are quoted as having proclaimed, “Neither a Borrower or Lender Be.” One was the bard, William Shakespeare. The other was Ben Franklin, one of America’s founding fathers, inventor, publisher, scientist and bon vivant. So here two respected men living more than a century and a half and an ocean apart, declared with equal fervor, don’t borrow or lend money, or you will regret it.
Of course in their day, the world economy was an entirely different phenomenon. A couple, few centuries conducting background checks and business research had its limitations. Surely, you could ask around if your borrower or lender was in your proximity, but in the global economy, your lender or borrow may be thousands of miles away. You need information about them. You need background checks on the individuals and business credit reports for the corporation. You need to know who you are dealing with.
Otherwise, heed Shakespeare’s words, or Franklin’s, and pay in cash. Don’t lend money. Don’t borrow it. Impractical? Surely. Improbable? Certainly.
But pay heed to such headline grabbing fiasco’s as the two principles who founded Hermosa Beach’s Club Sushi. right here in South California. It was a success, or so it appeared. So much so that other locations were planned. One in Hollywood and one in San Diego’s Gaslamp District. But then came trouble. The restaurant in San Diego never opened. The one in Hollwyood closed soon after opening.
Now two of the owners are seemingly on the lam. They are accused of falsifying financial and credit information. It is alleged they used their partner’s credit information, and when the economy turned they closed down and sold off all the equipment. They are sought for questioning. While they are innocent until proven guilty, it is safe to say they have a lot of explaining to do.
A sad story. True. but there are many such stories out there, especially in this rotten economy. The story is a lot sadder, if you were the person or company that lent them money, or gave them the equipment on credit. You don’t want to be that guy.
So conduct corporate research on anyone you are considering doing a venture with. If you are borrowing money or lending it, run background checks on the principals of the company as well as business credit reports on the company itself. The few bucks you spend for the ounce of prevention corporate research can afford you is well worth your peace of mind. Or you could heed the words of William Shakespeare and Ben Franklin, neither a borrow or lender be. But that was their world and this is the global economy. That sage wisdom is not the way you can do business today. So do the diligence.
Check them out before you do business.
