I know, I know, I watched the movie and was almost embarrassed for Jerry McGuire as he was screaming in the phone to save his last client. I wonder how many agents will go to any length acquire/maintain a customer?
Anyway, the money is right under your nose. The problem is that nobody really knows. Banks need to lend money to stay in business. If they don’t lend, they don’t make money. So, how do you get your fair share from these scary institutions? How do you get money during tough times?
There are ways to get money out of banks. You just have to know those ways. Here are 10.
10 Keys to Getting Financing
1. Lenders have plenty of money to lend!
2. Lenders are as specialized as doctors!
3. Always pre-qualify (interview) your lender before you visit them
• Ask them what amounts they lend, and let them know what you expect to borrow.
• Let them know the industry you are borrowing for. Ask them if they typically lend to that industry.
• Ask them what regions they lend in (location of lending and locations of business).
4. Understand you are only competing against others that are seeking money NOW!
5. The person taking your loan application can’t say YES, but they can say NO!
6. The first meeting is only the first date. Your goal is to get a second date.
7. The 4 P’s
• Punctual – Be on time (not early or late).
• Professional – Look the part.
• Prepared – Anticipate the questions
• Prompt – Get in and get out (5 Min.)
8. Always deliver your proposal in writing – Here are the parts
• Executive Summary – 1 Page
• Term Sheet
• Relationship(s) to Lender
• Credit Report – (1 paragraph if credit is bad of why it will never happen)
• Photos of business
• Board of advisors
◊1. Professional Relationships
• Acknowledgments/Award
• Financial Statements or Projects
• Business Plan (Who, what, when, why and how)
• Let the financial institution you wish to borrow from that you are ready to succeed.
9. Follow-up
10. Don’t let one lender be your whole financing plan.
These ten steps will ensure that you have the best shot to obtain financing. There are a number of things that you must keep in mind. Banks have to lend to make money. So, there is a tightening of the belt. But, for “deserving” borrowers, banks are always ready to lend.
Banks will also lend to a good idea. The business doesn’t need to be established. That’s a common myth. Banks are looking for people who are willing to put the time into the idea. Place the proper priority on a good plan and a good idea. Your business does not have to be a “brick and mortar” business to succeed in getting financing.
Your biggest task in this process is to make the bank comfortable with you. If the bank is comfortable with you as a person you will more than likely get the money. You are selling yourself as much as the business if not more.
Banks stay away from or are drawn to certain industries. As we mentioned above, find a bank that specializes in your particular industry and they will be much more inclined to loan to you than a bank that is NOT interested in lending to your industry.
Create a good loan package!!.
Now, I’ve shown you the money. Go get the big bucks….
Rob Wheeler
