Business owners and executives who seek funding for specific business needs should keep these important realities in mind. They are critical to the loan process and getting the right financing for your business. They can be overwhelming and confusing. And that is why businesses turn to Business Loan Solutions for help.
- Not all banks are the same…
- Philosophy
- Lending limits; house limit versus “comfort zone”
- Collateral lender versus cash-flow lender
- Preferred industries versus “prohibited or high risk”
- Relationship-driven or “hunter-skinner” model
- “Big fish in little pond” or “Little fish in big pond”
- Customer service
- Technology
- Pricing
- Not all bank relationship managers are the same.
- Commercial banks are not the only sources of financing.
- How much time do you have to invest in identifying the right bank, interviewing the right banker and determining which loan structure is right for your company?
- Have you identified the problem?
- Do you know how to present your request to the bank?
- Providing historical financial information that reflects the company’s ability to be successful
- Recognizing any problem that precludes the bank from lending to your business and showing how the problem has been mitigated
- Presenting a case for why this particular problem will not occur in the future
- Banks have gone back to the basics – the “Five Cs” of credit:
- Character
- Cash flow
- Collateral
- Credit
- Conditions
- Do you have a relationship with a CPA or accounting firm that the banker will know and be comfortable working with?
- Do you have a financial projection to illustrate how the loan will be repaid?
- Do you have a reliable in-house accounting system and personnel with the required checks and balances in place?
