| As in everything, there are do's and | | | | A good impression is a very important |
| don'ts regarding the successful outcome | | | | negotiating tool. It is what got |
| of a loan request. Keep them in mind, | | | | Aristotle Onassis to the very top of the |
| write them down if necessary and use | | | | rank. |
| them to make the best possible deal. It | | | | Remember it is not a "register of the |
| is all part of the preparation most | | | | money that comes in and the money that |
| people just will not take any notice of. | | | | goes out", it is a "financial |
| We have seen lots of things happen, good | | | | statement". It is not a track record of |
| and bad, that's why we're here, for you | | | | your "in's" and "out's", it is your |
| to capitalize on our records. | | | | "balance sheet". It is not "this is how |
| Do Not Be Put Off By Your Fears | | | | we stand at present", it is "our current |
| Banks need to give loans in order to | | | | status". |
| stay in business. They want you to take | | | | Do Not Be Afraid To Ask For Determined |
| one. They need you, so that gives you a | | | | Conditions |
| better position. Perhaps you could get a | | | | For example, you may wish to ask for a |
| loan from a lender who is familiar with | | | | determined payback period, explaining |
| your trade or specializes in what you | | | | why you want it that way. If you are |
| want to do. A car loan broker if you | | | | well presented, well backed up by a |
| want to buy a car, for example. | | | | business plan and sufficiently confident |
| Most Startups | | | | with the reason for requesting a |
| Most loans for a startup will require a | | | | specific term, you will surely get it. |
| very safe security, since they know the | | | | It is A Negotiation, Remember? |
| risks of a new business. The best | | | | The agent will almost naturally accept, |
| antidote for this is a well-designed | | | | probably if you would provide more |
| business plan. | | | | collateral, or something he wants as |
| Tell your future lender how you are | | | | compensation. So be prepared for this |
| going to carry out your business, what | | | | and maybe you might say something like, |
| your assets are, what target market you | | | | "instead of that, will you be willing to |
| are aiming at and more than one | | | | accept this?" |
| contingency plan. And do not forget the | | | | An Important Answer |
| possibilities of on-line marketing, | | | | As a rule, an agent asks simple |
| advertising and sales. | | | | questions but, believe it or not, most |
| Low Risk | | | | customers do not know the answers to |
| The more doors you open to success, the | | | | them or, in the best of cases, they are |
| lower the risk of failure and your | | | | doubtful. This might mean you are |
| banker has to know about it. Prepare a | | | | inventing on the spur of the moment, or |
| cover letter, get a template from | | | | that it is all a fake. |
| Internet if you are not familiar with | | | | A Stupid Question |
| the usual text, make a realistic cash | | | | Yep, an apparently stupid question but |
| flow and projection of the development | | | | which produces an even more stupid |
| of your business for the first three to | | | | answer is, "What will you do if there is |
| five years. | | | | too much demand and you can not supply |
| Fortune Making Preparation | | | | enough? Be prepared for an intelligent |
| Apply Onassis's technique to prepare a | | | | answer. That's what the question is |
| business meeting: Anticipate every | | | | asked for. To measure how sensible you |
| possible question you might be asked and | | | | are, when you are suddenly out of depth |
| work out a well explained answer. | | | | with a simple question the market asks |
| Remember to speak in business language. | | | | you. |