How to Convince a Banker

• Provide a well-conceived business plan that spells out your products, markets, customers, suppliers, and competitors. Lay out the company’s goals and achievements. Address potential concerns. Include a comprehensive executive summary—one to two pages only.

• Submit financial statements from at least the last three years. If the loan request is for a few million dollars or more, statements should be audited. Otherwise, tax returns may suffice. Projections on cash flow and earnings are helpful.

• Identify what the financing is for. Working capital? Long-term capital for expansion? Equipment?

• Specify sources of repayment.

• Identify possible collateral.

• Supply information on management, including experience, accomplishments, strengths and weaknesses.
  

Basic Banking Questions:

• How much do you need to borrow?

• How will you use the funds?

• How will you repay the funds?

A well-written business plan will help you determine the answers to these questions.

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