My business is focused on helping small businesses find the capital they need to start and grow their businesses. In the course of a day, I constantly hear a common phrase, "Why can't I get a "fair" loan without high fees and with low interest?"

Now, my answer is always predicated with a question, "Well, what do you call a fair loan?"

These lenders are risking their money (or the money of their depositors or investors whom they have a tremendous responsibility not to lose) in the hopes that you will pay them back. This is their business. This is how they make their money.

Think about your business. Do you provide a "fair" price for your goods or services? Do all your customers think your prices are fair? If they speak up and say; 'I want a fair deal' - do you cut your prices? I think not as you would not be able to cover your costs and earn the profits you expect to earn. Banks and other lenders are in the same boat.

The fees and rates that lenders charge are fair to the lenders. They charge fees and rates, not to rip you off, but to cover their costs. Just like your business, these lenders face the same expenses as any other businesses in this country. They have a cost of goods sold -called cost of money - paying interest on deposits, interest on inter-bank loans, interest and returns to investors. Without these costs, there would be nothing to lend. The also have salaries, office space rent or leases, marketing expenses, and so on - just like you.

So, while your costs and prices are rising in this highly turbulent market, so are theirs. Today, in the lending industry (all the lending industry), origination fees and high interest rates are just the way it is. You cannot give away your products or services and expect to survive and neither can they. So, what is "fair?" They have to cover their expenses or go out of business and thusly charge fair rates and fees to meet those expenses.

Note: Not all banks and lenders received bailouts - only the biggest and the loudest did.

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What is a Fair Small Business Loan?