Posts by Frank Nelson2

If we’re talking millions of dollars, you need to hunt for a connection between the company owner and either the president or a board member of the bank that greenlit the loan—or, if it’s a major institution like JPMorgan Chase, look at the head of corporate banking. That’s your easiest way to dig up the truth.

Otherwise, what you've described is actually pretty standard practice. I'd suggest digging into the parent company's financial statements instead; they'll likely give you a much clearer picture.

gentledriver12 said:I could use some advice here. So, my partner was blindsided by a huge mess yesterday—she basically woke up to find her bank account completely frozen. It wasn’t even her fault, really; Chase just locked everything down because she went over her approved overdraft limit. $1667 She brings home about $3,400 a month. About six months ago, she set up an overdraft protection agreement, but the deadline for that hit on December 31st. Now, the bank has just seized the funds to cover the deficit without giving her any heads-up. The real headache is that her employment contract is technically only for one month at a time, even though she’s been doing the same thing for two years now. I'm honestly not sure how to handle this. We're dealing with Chase right now.

This sounds like an internal freeze from the bank itself rather than anything involving Goldman Sachs. If that's the case, her accounts at other banks should still be wide open.

She could just open a checking account at a different bank, have her direct deposit rerouted there, and once that first paycheck clears, apply for an overdraft to cover what she owes at JPMorgan Chase. Some banks will approve an overdraft after just one regular deposit. Usually, those limits start at the amount of your monthly income, but you can probably negotiate that since branch managers typically have the authority to make those calls without needing a green light from corporate headquarters.

Another option would be to go into JPMorgan Chase and ask for an extension on the overdraft, presenting her most recent employment contract as proof of stability.

Nancy Gomez26 said:With all due respect, I have been a small business owner for over 20 years, living solely off my labor in the real sector. In fact, the industry I operate in is about as "real" as it gets.
As for "not knowing the subject matter"—if that were true, I would be facing the exact problems you are describing right now.

Regarding the drop in consumer spending—that is actually a positive development. Consumption cannot, and should not, be an end in itself. No amount of mindless spending will save this economy, whether it's here in the States or anywhere else; only production moves the needle. The system needs to be purged of those who refuse to pay, but also of the naive players who conducted business based on nothing more than a handshake or a verbal promise. At first glance, this might seem unfair, but it is simply basic market selection. It is fundamentally irrational to provide goods or services without receiving payment. Yet, in our current climate, it has become normalized. Some have built entire commercial empires just by failing to pay for the inventory sitting on their shelves. This pattern of non-payment must be eradicated. My hope is that we insist on strict payment terms so we can finally evolve into an economy with streamlined, efficient relations. Only those with actual capital should be permitted to conduct business. One cannot operate using someone else's capital without providing fair compensation, such as interest. When you fail to pay interest on borrowed capital—be it in the form of inventory or cash—there is a natural tendency for repayment timelines to stretch toward infinity. Without interest, the value of what eventually gets repaid is eroded by inflation. If these "creditors" failed to account for the risks inherent in the relationships they themselves established, they must now face the consequences of their own poor business decisions.

Consumption is something without which there is no economic growth, alongside exports. You could ramp up production by 300%, but if you have nobody to sell to, increasing output is useless. Plus, it's a common trap where you only get paid after the sale is made, creating a vicious cycle of decline.

Without consumption, there is no growth, yet very few people have said that clearly and loudly. Unfortunately, there are far too many incompetent voices stubbornly insisting that we need to slash spending.
If consumption were stimulated, the economy would pick up speed very quickly, which would automatically boost production and create new jobs, sustaining that consumption loop.
By freezing bank accounts and cutting off liquidity, we are heading in the opposite direction, and you only have to look around to see the proof.

Adam Taylor12 said:PM me? 😁

Email is better, though I guess DMs are fine for now. 🙂

To keep us from drifting off-topic, let's talk about account freezes—it’s a disaster. They freeze your business accounts while simultaneously forcing you to run everything through them. A company gets hit with an invoice for raw materials or inventory, then they can't pay because their funds are locked up. If they try to pay some other way, it won't be recorded as a business expense, which just means they'll end up paying higher corporate taxes later. If they don't pay due to the freeze, they might as well close their doors entirely since they won't have anything left to sell. It isn't surprising that the economy has stalled when the system, whether intentionally or not, keeps sabotaging the very people driving it. It doesn't just kill the company being frozen; it hits the suppliers too, since they lose clients who are stuck without access to their own cash.

Adam Taylor12 said:Which specific solutions are we talking about—solutions that actually remain within the bounds of the law?

If those solutions were ever posted on a public forum and became common knowledge, I guess the lawmakers would probably just move quickly to make them illegal.😉

So many businesses are getting crushed right now simply because their bank accounts are frozen. I mean, how are they supposed to pay their suppliers if a single creditor can lock everything down just over $333? It’s a disaster that leads to broken contracts, lost deals, and a total wipeout of trust. Half the time, there are actually legitimate reasons why a debt exists, and in those situations, settling the full amount is usually just a few months away, but only if the account actually stays active.

There are ways to deal with frozen accounts, but nobody seems to know about them. Honestly, the lawmakers aren't going to get any smarter or more resourceful than the entrepreneurs trying to navigate this mess.