AmiSight 12/2: Forbes Joins Inc. in Promoting “Alternative” Lenders
Last week, an article entitled "The Best Small Business Loans of 2022" came across my feed, and I was sad to see that Forbes had "curated" a list of high-interest quick payback lenders that they are telling entrepreneurs are "The Best." This article follows a pattern of the Inc. Power Partners last month that led me to resign from my Inc. column last month.
I remember many points along my entrepreneurial journey when I was in a cash flow crisis. If I wanted to take the "easy route," I could have jumped onto the internet, found an alternative lender site, uploaded a few bank statements, and within 24 – 48 hours, money would appear in my bank account.
But I would not have solved my problem – I would have only made it worse. The rapid repayment schedule of these loans and advances would have quickly caught up with me and most likely forced me into second or third loans. It wouldn't be long before I was working for the "lender."
Big brands like Forbes and Inc. should refrain from promoting these loans. Period. It's terrible for their brands and bad for the entrepreneurial community.