Being Wise in Business

(Prov 20:16 NLT) Get security from someone who guarantees a stranger's debt. Get a deposit if he does it for foreigners.

I have already told you that Solomon was an astute businessman. Here he gives us great business advice that complements what he has already taught us in Proverbs. In chapter six he said, "My child, have you promised to be responsible for someone else's debts? Have you been caught by your own words, trapped by your own promises? Well then, my child, you are in that person's power, but this is how to get out of it: hurry to him, and beg him to release you" (1-3).

To better understand what Solomon meant by that passage we need to understand the credit system in his era. In Solomon's time the Phoenicians seemed to have discovered the value of credit. The previous credit system was relatively fair. However, the Phoenicians started lending at unusually interest rates. This caused several people to be locked into bad deals and others could not qualify for credit at all. This forced them to look for a surety (someone who could guarantee the loan). In today's terms a surety would be a co-signer. Solomon tells us that if we allow our words to trap us into something (like co-signing a loan) that we did not completely think through, then the best thing to do is to swallow our pride, admit our mistake, and attempt to get out of the deal. It's not that Solomon was against generosity, but he was surely against foolish decisions.

Some even went to the extent of co-signing a loan for a complete stranger. This is hardly ever a good idea and for the believer it is even worse because we are commanded by God to meet the obligations we commit ourselves to. In other words, for the believer failing to pay is NOT an option. A person of poor character may enter into a loan without the intentions of paying it back, but we must never do so. Our word must be our bond. But don't be naïve enough to believe that everyone will live up to that high standard.

Solomon was not naïve and he was no fool (not by a long shot). Solomon fully understood that if someone with good credit guaranteed the loan of a total stranger with bad credit, that the deal had a high probability of going bad; and the person with good credit might realize his or her mistake and attempt to back out of the deal. This is why Solomon tells us to get collateral, even if the co-signer has good credit, because no one with good sense should co-sign on a loan for a complete stranger. This way, even if the person with bad credit defaults and the person with good credit attempts to back out of his or her responsibility, at least you have the collateral and you will be able to recover your investment.

So what does this mean to you ? A few things:
1. The Father expects us to be wise in business. Being a Christian, and loving people, does not mean that we should be gullible and stupid.
2. There is a difference between being generous and making a poor decision.
3. Don't allow your emotions to take you where your bank account can't keep you. This is great advice in today's credit-laden society.
4. Count the cost. Think things through, prayer over them, and make sound decisions.
5. If you make a mistake, don't allow pride to keep you in it. Get out as soon as you can.
6. God is not obligated to bless your mess, so be careful what obligations you take on. Where He leads, He feeds. Where He guides, He provides. If it's His will, then it's His bill! But if you take on obligations without seeking God, and knowingly ignoring His counsel, then you are going to have to reap the harvest of the bad seeds sown.

Father, I thank You for walking with me daily. You lead me in the way that I should go. I declare, by faith, that everything decision I make is a decision that is birthed out of my prayer life. I make decisions that line up with Your Word, will, and way. I am a blessing to others and I give to those in need. However, I am led in my giving. I don't overextend myself and endanger my family by making poor decisions. You lead me in the area of my finances and in every area of my life. I pray, I think things through, I count the cost, and I make sound decisions - BY FAITH! This way I am able to experience divine success in business and in everything I put my hands to do. In Jesus' name. Amen!