Asking a bank for money is something that almost every business owner will be faced with at one time or another. It can be a stressful and intimidating experience. But it doesn’t have to be.
The business banker that you meet isn’t actually your enemy – they’re your friend and your advocate. They will work with you to refine your proposal, honing it for presentation to their risk management group.
Banks are typically looking for two things – first and foremost is cash flow, collateral is secondary. Banks don’t want to own cars, buildings or special industry equipment. Seizing your collateral is failure for the bank – they won’t make any money auctioning off your assets. They want the loan repaid – with interests. So cash flow is the best place to focus your efforts when preparing your submission. Many businesses want to focus on the product or service and the marketing plans. This is what they’re excited about and it’s an important part of the proposal. Cash flow is full of numbers and boring, but this is what matters most to the bank.
If you’re starting a business or expanding an existing one, I can help you put together a great presentation for the bank and work with you to secure the financing you need.