28.99%

My friend Donna is a small business owner.  She has poured heart and soul into her retail business for the past two years and has been starting to show regular profits. 

If you’ve been paying attention to things in the news lately, you know that Bank of America is one of the banks that should be out of business, but instead was handed over FORTY FIVE BEEEEEEELION dollars of bailout money. 

That’s 45 billion of your dollars, my dollars, and Donna’s dollars.  Now, Donna has been an excellent customer of Bank of America and has tied all of her business accounts to the financial giant (she did this before it became clear that the lunatics were in charge of the asylum).

And in thanks for all the bailout money it got from Donna, and in thanks for Donna’s excellent support of said institution, the interest rate on her small business credit card was jacked up to….yep, you guessed it….a whopping and usurious TWENTY EIGHT POINT NINE NINE PERCENT.

How many small businesses are out there who also got the “Dear Customer” letter?  Donna’s not sure how she’ll get rid of her business’ credit debt before this onerous interest rate suffocates her business.  That interest rate gobbles up the profits she is making.

I reallllly need a very good explanation as to why this country is not letting bad businesses fail.  Failure isn’t a bad thing!  In some circumstances it’s the BEST thing.  B of A should be dead and buried by now and not sticking its bony zombied hands into every single pocket that they can.

I ask you, who in their right mind would seek out B of A in the future with interest rates like that?  Will this cost it customers?  Certainly it must.  If it costs enough customers, will it do well as a business in the future?  Certainly it cannot.  If it continues then to fail as a business, will we again have to bail the Loan Sharks out?  I guess we will.  So, in order to keep from having to let the Loan Shark stick its skeletal hand into our left pocket, we have to let it stick it into our right one by doing business with it???  We can no longer vote with our feet when it comes to Bank of America (GM, Chrysler, ETCETERA).

This is stupid.  This needs to stop.  Bank of America should not get the “good try award”.  It needs to go away and if it figures out a better way to do business, then it should come back, but not until then!

We should look at it like Thomas Edison did when it took 10,000 attempts at making the lightbulb…

“I have not failed. I’ve just found 10,000 ways that won’t work.”

Thomas A. Edison

If Edison were alive today and making the 8,972nd iteration of his light bulb, I’m sure the American government would be forcing us to buy bulbs that lasted 42 seconds even thought they were crap because Edison was “too big to fail”.  We might never gotten our light bulb.

How many bigger and better things are we going to lose out on because we are propping up businesses where being not good enough IS good enough and where there’s no incentive to be the best because you’re going get your money one way or the other?  And how many small businesses who are trying to be good enough, and maybe even trying to be the best, go out of business because these not good enough businesses aren’t allowed to suffer the natural consequences of being bad?

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About Lou (Linda)

Just a girl from Colorado trying to live life to God's glory with a certain amount of gusto! View all posts by Lou (Linda)

3 responses to “28.99%

  • wonderlandhwy

    I believe the misconception of “small business” is that they have money! Small business unfortunately gets taxed up the ying yang by the state and have struggled since the beginning of time to survive. You think Uncle Sam gives a hoot if small businesses get a penny, let alone 45 billion dollars?
    The interesting part about B of A is, since assuming the wonderful countrywide and receiving their bail out money, they don’t really have to help families or small business owners because, guess what, they already have their money! You’d be surprised (or perhaps not) at how many people can’t even get modifications with B of A. Apparently not everyone deserves to be helped, but they got helped and bailed out… go figure.

    Hope things turn out well for your friend Donna. Perhaps she could transfer the balance to another outfit. Or stop paying and forcing them into settling for less.

  • Ted Hurlbut

    Your friend is not the only small retailer with credit card debt piled up. From her point of view, and mine as a retail consultant, this is a method of financing inventory that’s always been too expensive, but now it’s onerous. Small retailers like your friend must work to develop the cash flow so that vendors will extend them credit, just like they do to larger retailers. Now, it’s become a critical task.

  • Lou (Linda)

    I’ve never been a fan of financing anything with credit. She is working on options to eliminate that kind of debt and work on a cash only basis. When the control is stripped from you, you have to take control! Thanks for popping in!

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