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Borrowing Money - Banker Key Questions

Borrowing Money - Banker Key Questions

The key questions the banker will be seeking to answer are as follows:

* Can the business repay the loan? (is cash flow greater than debt service?)
* Can you repay the loan if the business fails? (is collateral sufficient to repay the loan?)
* Does the business collect its bills?
* Does the business control its inventory?
* Does the business pay its bills?
* Are the officers committed to the business?
* Does the business have a profitable operating history?
* Does the business match its sources and uses of funds?
* Are sales growing?
* Does the business control expenses?
* Are profits increasing as a percentage of sales?
* Is there any discretionary cash flow?
* What is the future of the industry?
* Who is your competition and what are their strengths and weaknesses?





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Manage Your Business
(Visit Manage Your's Website) Successfully managing a business requires specific management skills in addition to knowledge of key business practices. Within this section you’ll learn about leadership traits, decision-making skills, and how to manage your employees. Additionally, we’ll walk you through a host of important topics to manage your business including: marketing basics, setting prices, filing your business taxes, legal considerations, forecasting for future growth, and financing options.

Manage Your Business is a Platinum author on EvanCarmichael.com
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