Sorry to be offline for a while; a lead validation program called Optify put a program into our login that screwed up the login procedures…..took us a while to figure it out. Fortunately, Optify is out of business.<\/p>\n
Anyway, this is part of an article in the NFIB Monthly Small Business magazine, which you might not see. We haven’t seen it on www.nfib.org<\/a>, either, but it might be there. The mag only goes to about 450,000 of the over 3 million NFIB members, for some reason, too. Here are their parameters (with a little ed comment):<\/p>\n 1. How much cash will be available to make monthly payments? How much variability is there in the monthly cash flow?<\/p>\n 2. Are there weaknesses to address? I.e., do revenues normally not cover expenses? Should the company be selling equity instead?<\/p>\n 3. Will the loan utimately increase the company’s cash flow? Is the project a revenue generators, or is the new loan replacing older, higher interest debt?<\/p>\n 4. Are you paying too much interest on another loan? (This is really an extension of item 3 above)<\/p>\n 5. What will happen if your business can’t pay off the loan? What are profitability trends? What steps can the business take to improve profitability (short of getting into Solutions Forum)<\/p>\n We hope these guidelines work for you….they also happen to be questions that most bank loan officers would ask.<\/p>\n","protected":false},"excerpt":{"rendered":" Solid questions you should ask yourself before talking to a banker about a loan Continue reading