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Learn to Impress Lenders

Proper preparation is key when you're angling for money to fund your business.

By JOSEPH BENOIT, ENTREPRENEUR.COM
Posted: 2009-08-11 13:21:31
Entrepreneur.com


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While obtaining a loan may be challenging amid the current economic climate, you can increase your viability as a loan candidate by taking steps to prepare for that initial meeting with a lender.

First, be thorough when preparing documents a lender may request. These include: past financial statements and tax returns, a copy of your current note and payment schedule (if your business is already established), and a detailed business plan.

Your business plan should include:



* Executive summary: A critical introductory statement encapsulating the main points of the plan; a window into every facet of your business.
* Market analysis: A thorough overview of your industry, target market and competitors.
* Company profile: A summary of your company's industry and a description of the elements that will make your business stand out.
* Organization description: A description of your management and organizational structure, the marketing and sales strategy; a description of services or products and financial information, including the requested loan amount, your company's current and forecasted income statements, balance sheets and cash-flow statements.

In addition to preparing a comprehensive business plan, consider these strategies prior to seeking a small-business loan:



* Contact a financial advisor early. Consider cultivating a relationship with your financial advisor before you need a loan. By establishing a relationship early on, you can build a foundation the advisor can draw on later to make a determination about a loan.
* Research loan options. Find out which loan options will best suit your needs and be prepared to discuss these options when meeting with a lender. Will you seek a secured (collateral-backed) or unsecured loan, and what type of payment terms would best meet the needs of your business?
* Plan ahead. Anticipate the questions a lender may pose and have honest, well-researched answers ready. Decisions to lend are fact-based; don't be idealistic when answering questions and providing projections. Lenders will appreciate your practical perspective. It may also be wise to organize all of your documents prior to the meeting for easy access to specific items when requested and to highlight your meticulous attention to details.
* Lend to your venture. Amid the tightened credit market, managing risk is increasingly important for lenders. With this in mind, consider providing ample collateral or money toward your venture if possible. Your willingness to invest in your success may reflect added confidence in your plan.
* Preparation before meeting with your lender is key. The time and commitment you dedicate in advance may help increase your appeal as a solid loan candidate in this competitive market.

Joseph Benoit is the small business banking executive for Union Bank, N.A. Visit www.unionbank.com for more information.

2009-08-11 12:45:16
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tropiquest 09:33:58 PM Nov 08 2009

Orinok-We have collateral,and references--they just want to fee you to death,thats the bottom line.I dont expect them to "work" for nothing but writing this crap up and putting it in a binder does NOT command 8 thousand dollars for an hour`s trouble.Get real.

tropiquest 09:29:16 PM Nov 08 2009

If John Dillinger were alive,he would set these weasels in their place.

tropiquest 09:26:27 PM Nov 08 2009

wanted to refi--bank said ok--for a 8K closing fee.....8k......there goes my equity,so some pencil pusher can brag how he made 8k of an honest working class guy....what is this country --for sale to the highest lobbyist?I hope they all O>D on that greed.Lawmakers=sold out the good folks and suckin the tit of the fatcats

rbayfamily6 04:53:03 PM Nov 08 2009

DIdn't the banks get millions and billions of $$$ of mine and your money in a bailout? Why won't they lend to us? It is our money. Why can't we drive a new Chevy? We own the company. It was our money that bailed them out. I had a 1964 Chevy Bel-aire. It go about 15 miles to the gallon. I have a Chevy Suburban. It gets about 15 miles to the gallon. Why did CHevy go for 40 some odd years and never get any better gas mileage for our vehicle. Now Saturn or Nissan get 45 or so and Chevy is not making Millions a year in profit, so we bail them out. Where is my social security money for my retirement? IN CHEVYWho made that decision? Was it "The People"? Remember OF the people, For the people? Just like health care. Did the people vote for it? 1 Republican did, and 9 Democrats did not! Where are THE PEOPLE listed. This country has gone to the Jack Asses and Elephant butts represented by the Democrats and Republicans. No wonder we are where we are. I called my democratic senator and republican

harriscb 04:15:42 PM Nov 08 2009

I am sure experiencing this in El Paso, Texas. I have a business (own the property and the building) and am trying to borrow $1.1 m against $1.8 m appraised value and you would think that I have some sort of disease.One bank (Wells Fargo) has already turned me down after wasting four months to make their mind up. I am forced to seek financing at a higher rate through an Indianapolis broker who is dealing with Canadian banks. What a mess.This is a product of lyin' , cheatin' , and stealin' by the mortgage brokers (operative word is "broke"), banks and real estate agents. Lending to folks that really didn't qualify, giving them variable mortgage rates then jack the rates up to where no one can make the payments. It is no mystery to me what happened to the economy....... the only mystery is why more people are not in jail.

vandeldenf 01:02:17 PM Oct 29 2009

You need to find a crooked bank and come up with crooked ideas. Loan approved.Otherwise you need to proof a bank WHY you don't need the money, then you only get 1/2.

franavaro 07:57:54 AM Oct 24 2009

if you seek funding for your business, send an email to 'advancedfinancecorp@live.com' for more info.

orinok 02:30:31 PM Sep 17 2009

Try looking at it from the other side. You don't know me but I ask you to loan me 100 dollars and let me pay it back next year. C'mon I swear I'll pay you back. Pretty please. Don't worry I have it all figured out how I'm gonna pay you back. Don't worry about why I got in a situation where I can't come up with a hundred bucks to finance myself. Don't worry about my credit history, or lack thereof, don't worry that I have no track record of profits to suggest I might actually pay you back, don't worry that the last person with a similar business proposal failed to pay you back, I'm not that person. I have it all figured out now so just give me the money and let me worry about it.

frenchfry195 07:07:43 PM Sep 01 2009

Hello, Karen here with Mathews Photo Arts, I'm just a small buisness just tring to get ahead in life even though these hard emconomically times. I never thought that I would have to ask for help even if anyone would help, all the banks and lenders are tighting up their belts and looking out for themselves instead of taking a chance on you.If they could see my site and see how much I try to help people by giving my customers a chance to Earn Money Back? Like $1.00 for every $10.00 they spend Okay! And How about a $1000 SHOPPING SPREE twice a year, A Free Gift Even? And a chance to earn REAL MONEY? Even Receive Rebates On Most Products. And they don’t even have to fill out and mail, the rebate forms, we do, and save them time and money. But I'm not giving up even without any help from anyone. I will go on and I will get though this alone.A lender should take a chance on what you sell and then decide from there, karen mathews : check out my site and tell me what you think?www.Mathews

mrmathews41 10:32:11 PM Aug 24 2009

WHAT’S NEW ON MATHEWS PHOTO ARTSAre you buying your Digital Photo Art Pictures, and Home Décor, at the wrong place? “Because, if you are, you are probably paying too much, and not getting what you are paying for. I bet you have to log-in, just to look around, shop, or even buy, am I right? Do they give you a chance to Earn Money Back? ---Like $1.00 for every $10.00 you spend --------- Okay! How about a $1.000 SHOPPING SPREE twice a year, A Free Gift Even? Not even a chance to earn REAL MONEY? Or Even Receive Rebates On Most Products. And do they even fill out and mail, your rebate forms, and save you time and money on your postage. ---- Well we do, and we do all this for you, our Customer. So what are you waiting for? --- It doesn’t get any better then this. Just go to;www.Mathews-Photo-Arts-and-Home-Decor.com and become one of our Customers, and, get something back for a change.Thank YouKaren MathewsMathews Photo Arts and Home Decor

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