Articles Tagged ‘Money’

How to Impress Loan Officers

Tuesday, December 20th, 2011

A recent Wall Street Journal article stated that banks are beginning to lend to the small business sector again; loan activity has actually picked up. Combine that with the slight improvement in overall economic conditions; you might think about putting your toes in the water and to see what is available in financing today. With that in mind, here are a number of things you should consider before approaching a lender for more money:

The things that will help you:

Be prepared. Come to the meeting with a financing package.

1. This includes company financial statements, tax returns, your personal financial statement and your personal tax returns from the last 3 years.
2. Know what you are going to use the money for: equipment, building, working capital and show what benefit that financing will do for your business (hopefully it will make you more money).
3. Have your company’s financial plan for the next 12 months defined in a projected profit and loss statement, balance sheet and cash flow forecast. Yes, it takes work; bit it also lets the lender know that you have thought this through and know where you are going. (Hint – nearly 90% of businesses don’t do this – so do you think that you will be ahead of the game by doing it? – YES)

Know your numbers. Be able to explain the key details of the things that happened in your company over the last 3 years that are reflected in your balance sheet and profit and loss statement. Examples would be:

1. Any changes in revenue – up, down or side ways.
Gross profit margin – deterioration, improvement or steady
2. Operating expenses – better than last year, worse, why?
3. NET PROFIT – financial statements should show improvement, if not be ready to clearly explain why.
4. Key balance sheet changes: debt to worth, working capital, current ratio, accounts receivable and inventory turns.

Communicate. Lenders use your financial statements as the report card on your performance as a CEO. Be ready to talk with them, show them around, get them involved, let them see your operations, talk with your people get connected with your business. People care about other people when they know about them and care about what they do. This is an element that cannot be effectively communicated with numbers on a piece of paper.

Your personal credit. Your personal credit is just as important as your business credit. Make sure that you are taking care of that! Pay your bills on time, keep your credit card balances at less than 50% of your line and be frugal. Your personal credit plays into the credit decision the lender will make.

These following things will NOT impress a lender:
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What’s Your Money Comfort Level?

Friday, May 13th, 2011

ScottManning

Last week at our Chapter Event I mentioned something during a discussion and I always know when it’s something that ‘stuck’, or made an impact on someone because they bring it back up at the end when we go around the room and everyone shares their “ah-ha’s” and committed actions for the next month.

I said, “show me someone who doesn’t like to be sold, and I’ll show you someone who doesn’t sell very much…”

I could have gone on to say, someone who doesn’t like to buy, doesn’t sell.

The point was made regarding people being offended by being offered to buy
things – period.

The principle is simple, people either appreciate others making money, or they
resent it. All too often I see people uncomfortable by others making money. I
think it’s crazy.

Seriously, how can you operate a business, intending to make money, when you
have stupid feelings about others making money. Talk about a money-repellent.

You might as well not even try.

Here’s one of my favorite lines to tell people when they are first getting
involved in “our” world. “If you don’t want people to complain about your
prices, you shouldn’t be complaining about others either!”

The bottom line is – You must embrace money, encourage it’s flow.

I say if you want to make more money, attract more opportunity, get rich
faster…

You have to let go of money – let it flow, let it flow, let it flow.

Here’s the best way I’ve found to describe this ‘letting money flow’ thing.

It comes from a Poem or Story about Love that I heard many years ago.

(yes, I’m using Love to illustrate a point about Money…that’ll teach ya, won’t
it)
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