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AS SEEN ON NATIONAL TELEVISION
OVER 60 TIMES

"Programs that make it easy to check your
Bank Statement"

FIRST IN THE WORLD made available to bank customers
Appeared 3 times on front cover of MONEY MAGAZINE

QUESTIONS LENDERS WILL ASK OF BUSINESSES 7/2/2007

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QUESTIONS LENDERS WILL ASK OF BUSINESSES

WHEN DEALING WITH YOUR BANKER - BE PREPARED
THE SORTS OF QUESTIONS YOU WILL BE ASKED
THE INFORMATION THAT YOU SHOULD HAVE READY

Most businesses need to borrow from a bank for working capital and/or special projects.
The bankers will ask themselves many questions about you and your business, such as what relevant
information has been provided by the customer pertaining to :

why does the business need the borrowings;
the business plan;
the operations of the business;
the management of the business;
the industry of the business;
the uniqueness of the business;
the competitors of the business;
the customers of the business;
the suppliers of the business;
the outlook for the industry;
the outlook for the business;
the assumptions made by the business;
what are those assumptions based on?;
the risks associated with the business;
how those risks will be handled if they eventuate;
the past profit results of the business;
the expected future profit results;
the past taxation submissions;
the future expansion plans of the business;
the future cash flows of the business;
the future borrowing requirements of the business;
the ability of the business to repay interest now and if interest rates change;
have they shown how they will repay ?;
what security is available if they are not able to repay ?;
has the business provided a ‘worst case’ scenario ?;
the past dealings with our bank;
the past dealings with other financiers

The bankers will then ask themselves :
based on the above .. what interest rate can we and will we charge ?;
based on the above .. what fees can we and will we charge ?
You can expect lower interest rates and fees if you are a better credit risk.

Your banker will require ongoing reports on your business.
The bank’s assessment of your business or proposal may highlight certain problem areas.

Would you lend money to someone without checking their ability to repay? Neither will banks !!

Author Name
Kevin Nowland -

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