Too Much Banking Backdoor Information Flow

By: Lance Winslow
Submitted: 2007-01-17 11:53:15
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

Most people believe that you can trust your bank. For the most part this is true however, if you are a small business person the chances are that your information is being passed on by loose lips. For instance you might become a topic of conversation at a party where an off duty teller mentions that you are loaded or that your business does not have adequate cash flow. Another instance might be the branch manager or an assistant manager of the branch who discusses your financial position with members of his Rotary club. I have seen this happen before and heard conversations.

In fact I remember hearing a conversation about me and my business at a party where the other party did not know that I was the business owner. It was at a Chamber of Commerce mixer and in they were talking about my franchisee and their financial position with a lawyer and another small business person. There is way too much banking back door information flow.

But it gets worse, as your business gets bigger you will find that venture capitalists and investment bankers will often pass on information to your competitors, creditors and their potential partners. I remember one time when an investment banker who had invested millions of dollars into my competition's kitty, pretending to be a franchise buyer of our franchise system. The next day, I got a phone call offering to loan me money or to buy my company. However, remembering that the day before they had called using trickery and misrepresentation; I conveniently told them where to stick it.

The moral of this story is to be careful of your banker and to what you tell venture capitalists and investment bankers. Many of these people are involved in other deals, mergers and acquisitions, as well as other investments perhaps even with your competitors. Every single piece of information you give them you should expect that it may end up in the hands of your competitors. Never trust a banker or any professional wearing a tie who smiles and tells you that you can trust them. Trust me, as I do not wear a tie and I am not bank of Lance. Consider this in 2006.

Lance Winslow

Article source: Expert Articles

Most Recent Articles in Ethics category

  • Tips To Handle Cases Of Sexual Harassment At Work Place - By: Sarah Jose
    Sexual harassment is the unwanted pressure on the sexual nature. The sexual harassment can either be physical or it can even be through oral words. The harassment can take place in any environment be it offices, school or even elsewhere.
  • Top Ten Tips for Recycling in the Workplace - By: Simon Fisher
    People often ask us for real practical tips on how to start recycling. Here's our top ten tip sheet for recycling in the workplace.
  • Ebay (R) unfortunately scams a seller, fraud stock deserves to drop - By: Joel Mclaughlin
    First off, a few months ago I had over 90 positive feedback with 100% satisfaction on ebay. This was earned over years of transactions. Unfortunately ebay (R) recently made some changes that really hurt my business in several ways. Including my business reputation, pocket book and lots of wasted time.
  • The Importance of Recognition in Business - By: Bruce Munro
    In business today, companies that create environments where people are motivated, and positive behavior is rewarded, will attract the best talent, maintain strong morale, retain key employees and ultimately stay ahead of the competition.
  • Business Ethics: Managing Your Relationship With Competitors - By: Nazeer Daud
    As a business, your competitors are just that: competitors. However, the way you treat your competitors may affect how your customers and the media perceive your business, your ethics, and your friendliness.
  • Save your future by proven resource of work at home guide to picmoney - By: Gagan Singh
    38 million people have put up their very first websites online this year 2005 alone. It is estimated that by 2008, the internet sales industry will top then dollar bank. And to think, majority of those sites will be offering different affiliate programs for people to choose and participate into.
  • Your Employers Right To Your Privacy - By: Scott Jarvis
    The question that now arises is why, if an employer can ask you not to bring personal business and problems to work do they have the right to peer into your personal business even after you've left the office? Even scarier, the law allows employers to view your personal spaces online such as your Myspace and Facebook pages.
  • Knockoffs and The Right Stuff - By: Kenneth Ragpala
    Kenneth Ragpala shares his views on faking the good stuff and robbing the originals their money. Also some political issues are discussed.
  • What are Business Ethics and What is Their Importance? - By: William King
    This article describes the importance of business ethics and how negligence towards them can have a negative impact on the business.
  • An Affiliate Reputation - By: Jody Bellon
    Your business reputation embodies your whole business and should be used to promote your business. Work on building a good reputation and make a name for yourself and you will be successful. If you don't your business will suffer and you will struggle every step of the way. Your reputation can make or break your online business.