How do I talk to a banker:
Talking to a banker has never been easy. Sometimes it even seems like a trip to the Dentist or something. One thing to remember, though, is that bankers want you to come in and ask for loans. It’s how they make their living. But they do have a certain set of circumstances they are looking for that will help them decide if you are a safety risk for lending to.
You can help them by painting the kind of picture they want to see. Here are a few steps you can take to help ensure your banker sees want you to want him to see.
What are good questions to ask a banker?
Show your banker that your company owns some tangible assets such as real estate or other property. Even if you have the weak cash flow or aren’t quite as creditworthy as other businesses. Many times hotels, brick, and mortar retailers, restaurants, and manufacturers will get a second look from banks, while companies such as IT providers that many times don’t have collateral won’t. When you add in strong sales plus collateral, you’ve got the best chance of landing a loan.
It also helps to be in any industry or field that is traditionally known for paying back its debts. Even with little collateral, data shows that consulting companies and professional, scientific, and technical services companies are among the top industries most likely to pay back debts.
How to get a business loan from a bank:
There really is no magic formula for getting a loan for small businesses and how do I talk to a banker. Make sure you have dotted all the I’s and crossed all of the t’s, and then make sure your banker has. Banks are under intense scrutiny from federal regulators, making them play by the book when it comes to measuring risk. This is why factors like industry norms may seem to count for more than the reality of your business’s facts and figures. The bottom line is, businesses are still getting bank loans and with the right business plan, you can, too! Download sample business plans