What Will A Banker Ask Me?

What will a banker ask me when I'm applying for a loan?

That's the question on a Google search that just resulted in a visit to my blog.

I almost always recommend that a prospective borrower put together a request for a business loan document. If written correctly, it answers most of the questions a banker will ask you when applying for a loan. A well written request for business loan document also improves you chances that the right funding source will say "yes, you're approved".

Here's what I include in the business loan proposals I prepare for clients.

• Executive summary - A short paragraph to make it easy for the lender to decide if they want to read any further
• Company overview - What is your business? Who do you serve? What competitive advantages do you have?
• Financing requirements - How much money do you need?
• Uses of funds - On what will you spend the money from the loan?
• Financial history & ratio analysis - How well (or poorly) have you performed in the last 24 to 36 months and why?
• Financial projections - What does the future look like once you get this loan?
• Collateral review - What sources of repayment are your offering? Banks typically look for cash flow, business assets, assets outside the business and in many cases, personal guarantees of the owners.
• Ownership - Who owns the company and how is it legally structured?
• Management/advisory board - Who helps you run the company?
• Key issues - What challenges are you currently facing and how do you plan to overcome these challenges?

Don't give up when the bank says "no". But do give me a call if you need help finding the right lender or telling your story the right way!

Related Tags: business loan, banker, bank loan, request for money, when the bank says no