Arise Business Solutions & Equipment Finance
A.B.N. 81 634 607 465
Suite 1A Level 2, 802 Pacific Highway Gordon NSW 2072
Fax: 02 9844 5445
Mobile: 0421 318 274
Email: mlark@arisebizsolutions.com.au
Seek PERSPECTIVE - Drive PERFORMANCE - Maximise PROFITS
Making your business loan interview a success!
Whether it’s a review of your current lending facilities or applying for a new loan, you’ve been thinking about it all morning, knowing your
business banker will be on time, that’s how they work!, they love numbers and you are worried about what they will think of your
business. Some tips to make the time effective;
Prior to the meeting:
1. Set an agenda - this is the best way to determine whether the banker you are dealing with is serious about your business. If they
don’t send you an agenda before the meeting, request they do so, so that you can prepare before hand and don’t be afraid of letting
them know what you want to discuss.
2. Have everything ready -
• Most recent financial statements including, profit and loss, balance sheet and cash flow statements. If these are still being
prepared by your accountant, provide drafts from MYOB.
• Most recent tax returns, including your partners.
• Up to date business plan including cash flow projections.
• A letter from your accountant stating all statutory obligations are up to date, including GST, superannuation and tax payments.
3. Photos - most of the decisions made about your loan application are made by credit risk managers that often located in a different
area. As a result they may not know your business or the area particularly well. By taking photos of the premises you wish to finance or
your current business premises send a powerful visual sales pitch.
During the meeting:
4. Introduction, not all business bankers sit in ivory towers in the CBD and ponder ways to increase your lending margins, often they
are based at local business banking centres and have a very good understanding of local business. As a result it is a good time to ask
them how their other clients are going and the general market conditions, you will be surprised, often they could also look after your
competition.
Ensure you have the meeting with no distractions, let staff know you are not available and turnoff your mobile. Even when meeting
on site, it is important to respect people’s time and have minimal interruptions.
5. Take the time to explain your business, recent developments and future opportunities. The key is to give information that is based
on quantifiable data. For example, “we have just won a contract to supply “X” for goods of “$20,000” for the next 12 months on payment
terms of “X” this will deliver a “$1,000” profit to our bottom line per month.
6. Integrity – don’t lie!! When asked about where the business is heading in the next 12 months, aim for a bellow average projection, its
better to surprise your banker with a great result rather than explaining what went wrong or being to optimistic. This also builds
credibility so that when you have a tight month and need to look at a temporary extension of your overdraft limit, your banker is much
more likely to support your request if they know you are telling the truth.
7. Summary – Its likely that the banker will take notes, however a one page summary of your proposal for finance helps reduce errors
and unnecessary questions. Its important to answer 5 main questions, who you are (background/experience) and your business
(history/milestones), why you need the funds (for example purchase a premises/stock), how the loan will be repaid (contracts in place)
and what if everything doesn’t work out (can assets be sold)?
8. Guided tour of your premises, even if it is an office. Introduce the banker to staff, let them see the business as it is operating on a
day to day basis. This will also give the banker an opportunity to ask more questions with how the operation is run. Being able to
demonstrate this visually is very powerful, as the business banker will be able to put forward your case with a better knowledge of the
operation.
Next steps, ask the banker what else is involved, if they will need to contact your accountant, the time frames and expectations moving
forward.
Author: Mike Lark, is a business banking advisor, offering complete financial solutions. He seeks perspective, drives performance and
maximises profits for small business owners.
Article Key words: Financial management, small business, business banking, cash flow, financial statements, overdraft limit, credit
approval, business plan, integrity, sales pitch and effective business solutions.