On What the Banks Are Looking for in a Borrower

1. YOUR CLIENT IN THE MIRROR (from a lender’s perspective) The Hunter Group

2. Lender’s Perspective of Your Client’s State of Affairs “What’s on a Lender’s Mind?” by Yuri Piltser of IDB Bank

8. “ Credit is not a right - it’s a privilege.” Anonymous Lender

10. Comparison of Various Payment Methods

12. “ EVERYTHING GOOD IS GOOD ONLY TO A POINT” My Mom

19. NWA TURNOVER A/R Days + Inventory Days - A/P Days = NWA Turnover Days Example 1 : 90 days + 90 days - 90 days = 90 days (NWA turn 4 times a year) $200M (profit on each NWA turn) x 4 = $800M Example 2 : 60 days + 90 days - 120 days = 30 days (NWA turn 12 times a year) $200M x 12 = $2,400M [bought on 3/1, paid A/P on 7/1, got paid on 8/1]

20. NWA TURNOVER Example 1 : $200M (profit) x 4 = $800M NWA of $2MM x 4 = $8MM in sales Example 2 : $200M (profit) x 12 = $2,400M NWA of $2MM x 12 = $24MM in sales THREE-FOLD INCREASE IN PROFITS AND SALES DUE TO TURNOVER EFFICIENCY ON THE SAME CAPITAL BASE!

21. Another Advantage of Quick Asset Turnover Assumption : The company’s overhead is $800M Example 1: No pricing flexibility! (if prices are reduced, there’ll be a loss) Example 2: Strong pricing flexibility (may go down to 5% GM, i.e. $1,200M, and still be able to cover the overhead!)

22. NINE KEYS TO SUCCESS

33. Bonus Key #10 – the most important one of all (for you and your clients) Enjoy every day of your Life! Make the best of it!