Leveraging Influence: Small Business Borrowing Money

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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