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5 Tips on Approaching Your Bank

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  • 5 Tips on Approaching Your Bank

    1.

    Understand that your primary responsibility is the proper use of capital and that you are in business to make a profit.
    2.

    Test the economics of your product or service. Make sure that it is profitable and that the gross profit percent is in line with that of the industry.
    3.

    Know how you will finance your business. Visit lenders (banks) prior to seeking financing to gather information. Ask your lenders what they will want to see before you apply for a loan.
    4.

    Develop a personal financial evaluation. Determine your net worth and your annual, personal cash flow needs.
    5.

    Develop realistic financial forecasts for income statements, cash flow and balance sheets for three years. Forecast monthly for the first year.
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  • #2
    Re: 5 Tips on Approaching Your Bank

    Seek out Certified or Preferred Lenders:-
    If you are looking for an SBA loan, check that your shortlist of lending institutions are either Certified or Preferred Lenders. This certification means they have a contractual relationship with the SBA and participate in the Certified Lender (CLP) / Preferred Lender (PLP) programs. In other words, they have a proven track record of processing SBA-backed loans and know what they are doing!
    Educate Yourself on the Fundamentals of the Lending Process:-
    Once you have your short list of banks, educate yourself about the fundamentals of business financing. Every bank will be interested in the viability of your business, its cash flow, and collateral. Take a look at this SBA Loan Application Checklist for an insight into what you will need to provide and discuss with your lender.

    Thanks.
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    • #3
      Re: 5 Tips on Approaching Your Bank

      Before set up a business we need financial support or funds which we are preferring from any banks or credit ***ds and I think these tips are really valuable for approaching a bank for funding a business these are really helpful.
      Credit Card Sued

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      • #4
        Re: 5 Tips on Approaching Your Bank

        1. Credit record.
        Do all in your power to protect your credit record. Communicate regularly with your bank, and service your accounts responsibly.

        2. Test profitability.
        Test the economics of your product or service. Ensure that it will be able to deliver profitability and that the gross profit percent is in line with the industry.

        3. Check your personal balance sheet.
        Determine your net worth and your annual cash flow needs. A bank will want security so the more detailed your personal balance sheet, the better. Always have substantiating documents available.

        4. See the bank manager.
        Know what information the bank will require and pay the bank manager a visit before submitting your loan application. Ask him what information the bank will need to evaluate the loan.

        5. Do financial forecasts.
        Develop realistic financial forecasts for income statements, cash flow and balance sheets for two to three years. Forecast monthly for the first year.

        6. Have a great presentation.
        Present your information in a neat, bound document. Simplicity and ease of reading will make their task easier and up your chances of an approval.

        7. Show your scenario planning.
        It can be valuable to include all your financial worksheets on a CD for the bank manager to test your model and your financial predictions.

        8. Act responsibly.
        Your primary responsibility is the proper use ofthe loan and knowing you’re in business to make a profit. Make thisvery clear in your proposa
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        • #5
          Re: 5 Tips on Approaching Your Bank

          Thank you for sharing these useful tips with us. It is really support me on my business. Develop a personal financial evaluation. Determine your net worth and your annual, personal cash flow needs.
          Marketing Plan | Marketing Plans | Business Plans | Marketing Services | Business Consultant

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          • #6
            Re: 5 Tips on Approaching Your Bank

            It is really a great f points like we need five figure to make a punch
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            • #7
              Re: 5 Tips on Approaching Your Bank

              For making loans:
              Keep in mind that to stay in business banks need to make loans.
              As an entrepreneur, make sure that you are thoroughly prepared when you go to your banker's office to request a loan.
              Learn to anticipate every question that he or she has
              Do not take an apologetic and negative attitude.
              Dress in a professional manner for the interview.
              Do not stretch the truth in your loan application.
              Be sure all your documents are neat, legible and organized in a cohesive and attractive manner.
              Do not push the loan officer for a decision.
              Be confident
              Failure to discuss risk in your application
              Remember that the first loan is usually the hardest to get.
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              • #8
                Re: 5 Tips on Approaching Your Bank

                Originally posted by johnywalter2 View Post
                For making loans:
                Keep in mind that to stay in business banks need to make loans.
                As an entrepreneur, make sure that you are thoroughly prepared when you go to your banker's office to request a loan.
                Learn to anticipate every question that he or she has
                Do not take an apologetic and negative attitude.
                Dress in a professional manner for the interview.
                Do not stretch the truth in your loan application.
                Be sure all your documents are neat, legible and organized in a cohesive and attractive manner.
                Do not push the loan officer for a decision.
                Be confident
                Failure to discuss risk in your application
                Remember that the first loan is usually the hardest to get.
                Great one. Great points
                Personal Finance

                Financial Tips

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                • #9
                  Re: 5 Tips on Approaching Your Bank

                  You offer good tips on starting and running a business - determining if it is viable and can be profitable. For bank's though - you have to show ...
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                  • #10
                    Re: 5 Tips on Approaching Your Bank

                    Great article!I have learned a lot more after reading this article.
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                    • #11
                      Re: 5 Tips on Approaching Your Bank

                      I wanted to give another tip to add to turez.

                      Advertise, a business cannot succeed without customers, and to get them you have to advertise.

                      It's what makes a big business big, and a small one small.

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                      • #12
                        Re: 5 Tips on Approaching Your Bank

                        Determine your net worth and your annual cash flow needs. A bank will want security so the more detailed your personal balance sheet, the better. Always have substantiating documents available.
                        That is the most important thing for me
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                        • #13
                          Re: 5 Tips on Approaching Your Bank

                          It is good to take benefits of newly develop concepts in banking sector, we are about to feel the good strategy development by banking sector to help us in different aspects.

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                          • #14
                            Re: 5 Tips on Approaching Your Bank

                            Nice tips, Thanks for sharing it with us.
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                            • #15
                              Re: 5 Tips on Approaching Your Bank

                              Yeah, useful article. Nice to learn new concepts.
                              Funderz business loans

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