document.write('<p><b><font class="heading">Show Me The Money! Strategies For Securing A Loan</font></b></p>');
document.write('<p><font class="text">Most small businesses will, at some point in their life, go to a bank or other lending institution to borr');
document.write('ow money for expansion of their operation. Many small business owners, however, initially fall victim to several of the ');
document.write('common and potentially destructive myths that concern applying for loans. For example, first-time borrowers commonly bel');
document.write('ieve…</p><ul><li><p>Lenders are lined up and eager to provide money to small businesses.</p></li><li><p>Banks are wi');
document.write('lling sources of financing for start-up businesses.</p></li><li><p>Loans are obtained by talking the lender out of fun');
document.write('ds.</p></li><li><p>When it comes to seeking money, the company speaks for itself.</p></li><li><p>A bank, is a bank, ');
document.write('is a bank, and all banks are cold, impersonal institutions.</p></li><li>Banks, especially large ones, do not need and ');
document.write('really do not want the business of a small firm.</li></ul><p>&nbsp;<br>Research shows that 67 percent of all small bus');
document.write('inesses that borrow money get that money from commercial banks. This places banks among the largest sources of credit; a');
document.write('nd makes them one of the most vital components to small business survival. Understanding what your bank wants, and how t');
document.write('o properly approach them, can mean the difference between getting your money for expansion and having to scrape through ');
document.write('finding cash from other sources.</p><p>&nbsp;<br><b>A Mile In The Banker’s Shoes</b></p><p>There is a name for peopl');
document.write('e who simply walk into a bank and ask for money…Bank Robbers. To present yourself as a trustworthy businessperson, depen');
document.write('dable enough to repay borrowed money, you need to first understand the basic principles of banking. Your chances for rec');
document.write('eiving a loan will greatly improve if you can see your proposal through a banker’s eyes and appreciate the position that');
document.write(' they are coming from.</p><p>Banks have a responsibility to government regulators, depositors, and the community in wh');
document.write('ich they reside. While a bank’s cautious perspective may be irritating to a small business owner, it is necessary in ord');
document.write('er to keep the depositors money safe, the banking regulators happy, and the economic health of the community growing.</p');
document.write('><p><br><b>Picking A Local Favorite</b></p><p>Banks differ in the types of financing they make available, interest r');
document.write('ates charged, willingness to accept risk, staff expertise, services offered, and in their attitude toward small business');
document.write(' loans.</p><p>Selection of a bank is essentially limited to your choices from the local community. Banks outside of yo');
document.write('ur area are not anxious to make loans to your firm because of the higher costs of checking credit and of collecting the ');
document.write('loan in the event of default.</p><p>Furthermore, a bank will typically not make business loans to any size business un');
document.write('less a checking account or money market account is maintained. Out-of-town banks know that non-local firms are not likel');
document.write('y to keep meaningful deposits at their institution because it is to costly in both time and expense to do so.</p><p>Ul');
document.write('timately your task is to find a business-oriented bank that will provide the financial assistance, expertise, and servic');
document.write('es your business requires now and is likely to require in the future. Your accountant will be able to assist you in deci');
document.write('ding which bank will best suit your needs and provide the greatest value.</p><p><br><b>Realize The Value Of Schmooze</');
document.write('b></p><p>Devote time and effort to building a background of information and goodwill with the bank you choose, and get');
document.write(' to know the loan officer you will be dealing with early on.</p><p>Building a favorable climate for a loan request sho');
document.write('uld begin long before the funds are actually needed. The worst possible time to approach a new bank is when your busines');
document.write('s is in the throes of a financial crisis. That’s like walking into a funeral parlor carrying a body!</p><p>Remember th');
document.write('at bankers are essentially conservative lenders with an overriding concern for minimizing risk. Logic dictates that this');
document.write(' is best accomplished by limiting loans to businesses they know and trust.</p><p>Experienced bankers know full well th');
document.write('at every firm encounters occasional difficulties; a banker you have taken the time and effort to build a rapport with wi');
document.write('ll have faith that you can handle these difficulties.</p><p>A responsible reputation for debt repayment may also be es');
document.write('tablished with your bank by taking small loans, repaying them on schedule, and meeting all facets of the agreement in bo');
document.write('th letter and spirit. By doing so, you gain the bankers trust and loyalty. He or she will consider your business a value');
document.write('d customer, favor it with privileges, and make it easier for you to obtain future financing.</p><p>&nbsp;<br><b>Enter ');
document.write('With A Silver Platter</b></p><p>Lending is the essence of the banking business and making mutually beneficial loans is');
document.write(' as important to the success of the bank as it is to the small business. This means that understanding what information ');
document.write('a loan officer seeks, and providing the evidence required to ease normal banking concerns, is the most effective approac');
document.write('h to getting what is needed. A sound loan proposal should contain information that expands on the following points:</p>');
document.write('<ul><li><p>What is the specific purpose of the loan?</p></li><li><p>Exactly how much money is required?</p></li><li');
document.write('><p>What is the exact source of repayment for the loan?</p></li><li><p>What evidence is available to substantiate the ');
document.write('assumptions that the expected source of repayment is reliable?</p></li><li><p>What alternative source of repayment is ');
document.write('available if management’s plans fail?</p></li><li><p>What business or personal assets, or both, are available to colla');
document.write('teralize the loan?</p></li><li><p>What evidence is available to substantiate the competence and ability of the managem');
document.write('ent team?</p></li></ul><p>&nbsp;<br>Even a brief examination of these points suggests the need for you to do your home');
document.write('work before making a loan request. It is a virtual certainty that an experienced loan officer will ask probing questions');
document.write(' about each of them. Failure to anticipate these questions, or to provide unacceptable answers, is damaging evidence tha');
document.write('t you may not completely understand the business and/or are incapable of planning for your firm’s needs.</p><p>Here ar');
document.write('e a few additional steps to take before applying for your loan…</p><p><b>Write A Business Plan</b></p><p>To present ');
document.write('you and your business in the best possible light, the loan request should be based on and accompanied by a complete busi');
document.write('ness plan. This document is the single most important planning activity that you can perform. A business plan is more th');
document.write('an a device for getting financing; it is the vehicle that makes you examine, evaluate, and plan for all aspects of your ');
document.write('business. A business plan’s existence proves to your banker that you are doing all the right activities. Once you’ve put');
document.write(' the plan together, write a two-page executive summary. You’ll need it if you are asked to send "a quick write-up."</p>');
document.write('<p><b>&nbsp;<br>Have an accountant prepare historical financial statements.</b></p><p>You can’t talk about the future');
document.write(' without accounting for your past. Internally generated statements are OK, but your bank wants the comfort of knowing an');
document.write(' independent expert has verified the information. In addition, you must understand your statement and be able to explain');
document.write(' how your operation works and how your finances stand up to industry norms and standards.</p><p><b>&nbsp;<br>Line up r');
document.write('eferences.</b></p><p>Your banker may want to talk to your suppliers, customers, potential partners or your team of pro');
document.write('fessionals, among others. When a loan officer asks for permission to contact references, promptly answer with names and ');
document.write('numbers; don’t leave him or her waiting for a week.</p><p>&nbsp;<br>Walking into a bank and talking to a loan officer ');
document.write('will always be something of a stressful situation. You’re exposing yourself to the possibility of rejection, scrutiny, a');
document.write('nd perhaps even criticism of your business. Preparation for, and thorough understanding of this evaluation process, is e');
document.write('ssential to minimize the stressful variables and optimize your potential to qualify for the funding you seek.</p><p>Ke');
document.write('ep in mind that many times a company fails to qualify for a loan not because of a real flaw, but because of a perceived ');
document.write('flaw that was improperly addressed or misrepresented. Finally, don’t be shy about calling your accountant with questions');
document.write('; their experience and invaluable advice will be able to best prepare you for working with your bank.</p>');