Why American businessmen and businesswomen are eating everyone’s lunch

By Bruce Firestone | Business Coaching

Jan 10

I coach some fantastic entrepreneurs in the US, Canada and elsewhere. However, there is an experience common to entrepreneurs the world over except for the US. Their business ecosystem is different.

I wrote to a Canadian woman I coach who runs a real estate portfolio focused on Airbnb and student rentals who is expanding her enterprise to include recreational property. She has an outstanding track record and credit history.

Her frustration (which I share) involves financing or lack thereof from Canadian banks and lenders. Here’s what I wrote Abbie (not her real name):

Lenders are treating Canadian entrepreneurs like you as if they are the enemy.

My clients in the US—well, lenders just throw money at them. Home visits by US bankers are not uncommon– they want you!

If someone asks for a $375k loan to, say, build-out a new physio practice, a US-lender replies, “Nope, I won’t give you $375,000. How about $425,000 instead?” To which you say, “Yes!”

The reason they give you more than you ask for is US-bankers know things go wrong/cost more and they want you to finish/open and have some working capital leftover too.

In Canada (and many other parts of the planet), they say, “I can only justify lending you $250,000,” and you still say, “OK.” But that’s because entrepreneurs (anywhere) are endless optimists and they think, “I’ll find a way to make it work.”

What’s a half-finished space worth, a half-finished project, a half-finished building? Not much, it may even have a negative value.

This is one of the biggest reasons why American businessmen and businesswomen are eating everyone else’s lunch 😊

There’s a saying: “Canadian bankers only lend money to people who don’t need it.”

How true. How misplaced. How sad.

FOR REAL ESTATE INVESTMENT AND BUSINESS COACHING THAT’LL HELP YOU PROVIDE FOR YOURSELF AND YOUR FAMILY FOR 3-GENERATIONS, PLEASE CONTACT:

Bruce M Firestone, B Eng (civil), M Eng-Sci, PhD
Real Estate Investment and Business coach
Century 21 Explorer Realty Inc broker
Ottawa Senators founder
1-613-762-8884
bruce.firestone@century21.ca
twitter.com/ProfBruce
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brucemfirestone.com

• MAKING IMPOSSIBLE POSSIBLE
• FREEDOM VIA REAL ESTATE INVESTMENT AND PB4L, PERSONAL BUSINESS FOR LIFE
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Image source: https://commons.wikimedia.org/wiki/File:Gilbert-Shylock.jpg

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About the Author

Bruce is an entrepreneur/real estate broker/developer/coach/urban guru/keynote speaker/Sens founder/novelist/columnist/peerless husband/dad.

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