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