Like every loan company, we have also had a few horrible failure stories that still hang over our heads both in the way we feel amongst our workers and that hurt our business account in the end. Our biggest story of this was our failed funding of a small casino based off the strip of Vegas.
The casino was sold to us as a club that was designed to get people as drunk as possible, then to push those same people into the casino section where they would spend the rest of their money. While this does not sound ethical, when you come to Vegas you should expect this exact scenario in every hotel let alone casino.
The great thing about the casino was not only that they were offering great games to the owners, but they were also in a different zone to the club that was much more luxurious than the nightclub itself. This was the first oversight in our end, as we should have expected that the nightclub not being just as luxurious would turn people off entering to begin with.
Moving forward from this, some issues of the casino only became clear once the loan had already been accepted and sent to the business owner. The actual casino section itself were cut off from any alcoholic drinks. Since the plan was to get the customers drunk enough to start gambling to begin with, then there should have been some plan to keep them drunk so they would continue to gamble. But the business owner had only explained after that he wanted the casino section to be relaxed.
Since the casino had no structure itself and the ideas that would intend the customers to gamble to begin with were flawed, the plan was executed at the last minute to become a casino only. Since casinos are generally profitable, we were not against this idea. But casinos are a dime a dozen, and the lack of alcohol meant that the casino had closed down two years after opening, with us only receiving just over 20% of the loan back.