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    Tips For Getting Your Business Loan

    3/3/2015

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    If you’ve tried to get a loan from the bank for your business lately, you know it’s no slam-dunk.  The promos for SBA loans and loans for minority or women owned businesses sounds great, but when you get nose-to-nose with a banker it’s another story.
     
    Some of the reasons that make it seem so difficult are that many lending officers feel that they’re lending you their money instead of the bank’s.  They take almost personal responsibility for maximizing repayment.
     
    Another is that they are particularly suspect of new ventures. Since 4 out of 5 or 80% fail within the first three years, many lenders require a three-year history of doing business.
     
    Lastly, with all the bank merging and acquisitions that have taken place the decision-making process has been moved far off-site from the local branch.  Add all of these reasons up, and you had better be prepared to razzle-dazzle the banker.
     
    Here are some tips to make lending you more attractive to the bank.  First, start with a two-part presentation.  Initially submit a brief overview of your loan request.  In this overview include:
     
    • Excerpts from your business plan about your business concept, management team, and financial projections.
    • Credit history overviews of the principals of your business.
    • Brief answers to key lender questions of how much you’ll need, how you’ll use it, and how will you pay it back?
     
    This should be a two to three page document and can be considered a mutual qualifier.  It determines if the bank has any interest in lending you funds before you spin your wheels for hours in front of the loan officer. You may want to end the document with your phone number so that the banker can call you back for an appointment or discussion.
     
    If you’ve dazzled the loan officer sufficiently and have obtained an appointment to meet with him, then it’s time to prepare the “big guns”.  The ammo you’ll come prepared with will be three years of personal tax returns for all the principals of your company and the existing business.  Include credit reports on all principals, a complete and impressive business plan, and collateral and capitalization information.
    ​
    This sounds like a lot of information and will require immense effort, but that’s why business ownership isn’t for everyone.
     
    In addition to being prepared with all that paperwork be prepared for any off-the-wall questions the lender might throw at you.  Take time to think about and originate a 30-second commercial about what you plan on doing and how it will benefit them and the business.
     
    Be prepared to explain away any credit blemishes that show up on the credit reports before the banker has an opportunity to worry about them.  Be sure you’re able to show “cash-flow” understanding and awareness, without which any business is doomed.  Plot your most realistic estimated cash flow and bank account balance.  Make sure the bank balance never goes negative, and for a good touch show the loan repayment as a separate line item.  This shows the banker that you understand priorities.
     
    Collateral may be needed to satisfy the lender’s angst about repayment of the loan, and unfortunately most small businesses have too few assets to satisfy this need.  Many entrepreneurs are forced to pledge personal assets such as their home to allay the bank.  This may seem scary, and it is, unless you’re really sure of your success. 

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    Are You Unhappy With Your Current Job?  Find Your Passion - Start A Business

    2/2/2015

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    Statistics shows that about 75% of the people working today are unhappy with their current jobs. One reason is that their talents are wasted because it is not applicable for their current jobs.

    That’s just one problem. You might have unreasonable demands placed upon you. You have to work really long hours to get anywhere. The paths to promotion may be blocked. You can’t get to where you want to be because of the view that people have of you, your experience, or your performance in the job.

    Maybe a little self-improvement will help you out with that problem. You should know how to appreciate your job if you want to succeed in life.

    If you are always late to your job, maybe it will become the reason for your termination. Why don’t you try to wake up early or if you’re always experiencing traffic, try to find other route. Self-improvement of your habits will help you succeed.

    There might be criticism leveled against you that isn’t just. There could be too much politics or backstabbing, you have to grease the right palms to get ahead. The job may just not be what you expected. You were promised one thing, but it turned into something else.

    One thing that you should do about backstabbing is always retain your temper at the right level. Don’t try to argue with your officemates of it will be another reason for firing you.

    You have to get to the root of what is causing your unhappiness about where you are and what you’re currently doing. The easiest way is The Five Whys. Ask, “Why?” five times.

    “Oh, I’m not happy.” Well, why? “Because I got passed for a promotion.” Why was that? “Because they didn’t value the project I was working on.” Why not? “Because management changed and they changed the objectives.” Well, why was that? You really sort of drill down to the root cause and find out what the problem really is.

    Once you decide that you need a change - that's where the real fun begins. How to go about finding a new job or change careers completely.

    There’s another way of looking at, the Top Ten Signs That You Need a New Job. It’s a bit like a Letterman Top Ten. They’re a bit tongue-in-cheek, but there’s a bit of truth in all of them.

    10: You’re outgo exceeds your income. You just need more money.

    9: The most rewarding thing you did this week was sharpen all 12 of your pencils to the same length.

    8: You’re reluctant to be a Career Day speaker at your kid’s fourth grade class.

    7: Everyone in your workgroup got a raise except you.

    5: You were late for work three times this week, but you don’t care.

    4: There’s a meeting at 3:00 to talk about the upcoming reorganization, but you’re not invited.

    3: Your boss keeps forgetting your name.

    2: You constantly daydream about being a forest ranger.

    1: Your company was recently acquired and you spent two weeks worry that you’d be laid off. After that, you worried that you wouldn’t be.

    Remember, finding a new job nowadays is really hard.  So, before you decided to look for another job, consider starting your own company and keeping your mind sharp with the latest self improvement information.  


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    About Us

    Our mission at Integrity Management is to provide our clients the most practical, cost-effective, and timely recommendations available tailored to their specific needs and capabilities.   (Learn More)

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    William "Bill" Pate
    Owner - Executive Coach
    410-935-5513
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    What We Specialize In:

    Business Assessments
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    Business Plans
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    Our Clients

      Paul Smith College
                Penn State University
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                Eastmet Corporations
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                HealthCare Management Technologies
                Misys Healthcare Systems
                Mercy Health Services
                Maryland Specialty Wire
                Phillips OverSeas
                BrandLauncher
                Johns Hopkins Hospital
                Several National and International Printing and Injection Molding Companies
                Caldwell Banker
                Many Real Estate Investment Companies and Associations
                Literally hundreds of companies
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