Just Say No To Their Money!
As an established VBO, rarely does a day go by that I don’t get something in the mail offering to provide me with a business loan.
Heck, there have been days that I’ve actually thought about taking them up on their offer.
For starters, you probably know that one of the three foundational strategies of VBOs is never to bring in outside capital. This means no money from investors or financial institutions (banks, cash advance loans, etc.) But the stakes just got way higher and the underbelly of the financial market is having a feeding frenzy on small business people.
Literally ruining their lives.
Let me explain what is going on and what you need to do to avoid it. So, there is an old legal vehicle called a “Confession of Judgement”. If you or hear these words, run don’t walk away from them. Essentially, a confession of judgment is the equivalent of signing away all your rights before you even get started.
It basically gives up your right to defend yourself in advance.
Armed with this document a lender can (without proof) accuse the borrower of not paying and seize their assets before they even know what is going on. Sounds bad - it is.
Small business people all over this country are having everything they own ripped away from them by these shady lenders.
According to a recent article by BusinessWeek, the growth and abuse of this arcane “Confession of Judgement” is alarming.
They just rip everything away from you and you have nothing to say. Clearly, this is not all financial institutions. But the trend is growing. The easiest way to avoid this is to follow VBO Nations core strategy and never borrow money for your business.
However, if break that rule - we just want to make sure you are walking into a trap you cannot get yourself out of. It seems there are a few companies totally abusing this.
The largest one is Yellowstone Capital, LLC.
The number of cases where confession of judgment has been used has skyrocketed from virtually nothing in 2014 to over 3,500 cases in just Q3 2018 alone. It has affected people in virtually every state and literally broken the backs of well-intentioned small business people.
As always, VBO Nation is focused on protecting our followers from the bad guys.
One day soon karma will get these bad actors, but in the interim, don’t sign anything that has “Confession of Judgement” language.
Thanks! I don’t like to be negative. But this is one that I needed to share. Have a great day and we will talk to you soon.
Founder & Fellow VBO