Been to a bank with high interest rates recently? No? Well, welcome to the favour bank where repayment of a loan might end up costing you double the amount you borrowed. Simply put, the favour bank is a case of ‘You scratch my back, I scratch yours.’
It works in two ways; first you could simply ask for a favour, or take out a loan. Or second, someone can make deposits into your account, helping you by introducing you to people or by arranging a few deals and soon enough you know you owe them something, yet they won’t ask for anything. Until one day where they could ask you for a favour….
You could simply say no, but you are conscious of being in debt and you are worried about your credit rating. If you repay your debt others will see you are a loyal, decent person worth investing in and they too begin to do you favours (make deposits in your account) and pretty soon they will ask for a repayment and before you know it, your network has grown and the favour bank is thriving, much to your advantage. But if you say no because you believe you were helped due to some deserving nature, unlike the bank, you will not be taken to court and sued but merely thanked and your benefactor seeks repayment elsewhere. However your credit rating falls without a word being said, and soon enough, people begin to notice you are neither trustworthy nor loyal and they stop making deposits in your account. Your funds dry up, your network narrows down until you stand alone, isolated because of one “no.”
The favour bank is risky business. The lines are more blurry than a regulation bank and the legislation is never concrete enough to keep one well informed. But perhaps we should realize that as opposed to looking at it as a favour bank, we should feel honoured that we have been asked for help, or we should appreciate those who have helped up. It shows they have faith in us and our capabilities.
Not everything should be regarded as a profit making opportunity. The cut throat art of business is best not applied to human morality.