I tried to get a small business loan to invest in my MLM business and every bank turned me down. The loan officer told me that banks generally do not finance MLM businesses because: the failure rate is too high, there is no real business equity to secure the loan, the distributor does not own the business or its assets, and income is unpredictable. If professional financial institutions will not invest in MLM businesses, what does that tell us? Should this be a wake-up call?
I tried to get a small business loan to invest in my MLM business and every bank turned me down. The loan officer told me that banks generally do not finance MLM businesses because: the failure rate is too high, there is no real business equity to secure the loan, the distributor does not own the business or its assets, and income is unpredictable. If professional financial institutions will not invest in MLM businesses, what does that tell us? Should this be a wake-up call?
Here is what bothers me most about the MLM industry: the blame-the-victim mentality. When someone fails, they are told they did not work hard enough, did not believe enough, or did not attend enough events. It is never the company fault or the model fault. This is textbook manipulation.
Thank you for sharing this. I wish I had read something like this before I joined my company. It would have saved me a lot of money and some friendships. I am sharing this with anyone who is considering joining an MLM.
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