Tell Your Banker These Two Things When You Want to Borrow Money

By Bigg Success Staff
04-24-08

Bigg Success in Business

There’s a complaint that you’ll hear from banker after banker. Although it’s not really a complaint; it’s an observation from which we can learn.

They’ll tell you that potential borrower after potential borrower sit in front of them seeking money. These borrowers weave elaborate tales about the businesses they plan to build. They tell them about all kinds of things.

However, a half hour … three-quarters of an hour … even an hour later, they still haven’t told the banker the two most important things.

#1 – How much you want to borrow
After you extend pleasantries with your banker, the first thing you should tell him or her is exactly how much money you want.

Many people are uncomfortable talking to bankers and even more uncomfortable talking about borrowing money. But if bankers don’t lend money, they won’t stay in business.

That’s the product they sell (or rent in their case). So don’t be shy about telling them this.

#2 – How you will pay it back
The rest of your conversation should focus on this. Many business people make another huge mistake here – they talk about sales. But remember this …

So talk about your profits – historical and projected. Explain why you feel this loan will increase your profits. Tell your banker what you will do if those profits don’t materialize.

Tell your banker how much you want to borrow and how you will pay it back. It’s a simple outline for an effective loan presentation.

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(Image by J-Cornelius,CC 2.0)