How to get Business Loans Approved by Banks

Introduction 3 lectures 09:59 Introduction preview Brief Introduction and why this topic matters Why Bank need Loan Requests (in writing) What is the purpose of the Loan Application/Request and why Banks need to receive a written one before starting any discussion with the client. The Critical Purpose of the Loan Request The ultimate reasoning behind Financing Requests or Loan Applications is the assessment of the risks involved for the Bank when providing such loan. Introduction 3 lectures 09:59 Introduction preview Brief Introduction and why this topic matters Why Bank need Loan Requests (in writing) What is the purpose of the Loan Application/Request and why Banks need to receive a written one before starting any discussion with the client. The Critical Purpose of the Loan Request The ultimate reasoning behind Financing Requests or Loan Applications is the assessment of the risks involved for the Bank when providing such loan. Introduction preview Brief Introduction and why this topic matters Introduction preview Brief Introduction and why this topic matters Introduction preview Brief Introduction and why this topic matters Introduction preview Brief Introduction and why this topic matters Brief Introduction and why this topic matters Brief Introduction and why this topic matters Why Bank need Loan Requests (in writing) What is the purpose of the Loan Application/Request and why Banks need to receive a written one before starting any discussion with the client. Why Bank need Loan Requests (in writing) What is the purpose of the Loan Application/Request and why Banks need to receive a written one before starting any discussion with the client. Why Bank need Loan Requests (in writing) What is the purpose of the Loan Application/Request and why Banks need to receive a written one before starting any discussion with the client. Why Bank need Loan Requests (in writing) What is the purpose of the Loan Application/Request and why Banks need to receive a written one before starting any discussion with the client. What is the purpose of the Loan Application/Request and why Banks need to receive a written one before starting any discussion with the client. What is the purpose of the Loan Application/Request and why Banks need to receive a written one before starting any discussion with the client. The Critical Purpose of the Loan Request The ultimate reasoning behind Financing Requests or Loan Applications is the assessment of the risks involved for the Bank when providing such loan. The Critical Purpose of the Loan Request The ultimate reasoning behind Financing Requests or Loan Applications is the assessment of the risks involved for the Bank when providing such loan. The Critical Purpose of the Loan Request The ultimate reasoning behind Financing Requests or Loan Applications is the assessment of the risks involved for the Bank when providing such loan. The Critical Purpose of the Loan Request The ultimate reasoning behind Financing Requests or Loan Applications is the assessment of the risks involved for the Bank when providing such loan. The ultimate reasoning behind Financing Requests or Loan Applications is the assessment of the risks involved for the Bank when providing such loan. The ultimate reasoning behind Financing Requests or Loan Applications is the assessment of the risks involved for the Bank when providing such loan. How to properly structure a Loan Application 13 lectures 01:04:16 A template with the structure of a Financing Request/Loan Application There is no such thing as a universal template. What I provide here is an alternative, a guidance to a structured one that in my view provides all the information the banks need. Identification of the Borrower The Bank must know from the very beginning to whom it will be lending the funds. Type of Loan requested and explanation of Credit Need There are many types of credit/loans. The Bank must know what type and main characteristics of the loan you are requesting. Different Types of Security and Related Considerations Security is one of the most important topics when requesting loans and have a direct impact on the credit scoring and risk analysis done by banks. It is important to understand the role security plays and the basic considerations around it, to be able to propose adequate collateral to the bank in the request for financing and then discuss it with bankers. TrackRecord/Experience/Industry Position Banks will look at how experienced your business is and what history of activity you have behind. Management of The Borrower Who owns and who manages the Borrower is a crucial information for Banks Historical Financial Statements It is crucial to present a full set of financial statements when requesting a business loan. Banks need to know about the company's financial performance and they make many conclusions from them about risks incurred with a certain Borrower. Business Plan/Projections Banks also need to know about projected/estimated results, particularly when you are requesting a loan above 12 months. Industry/Market Analysis Banks have certain knowledge and opinion about the several industries/sectors of activity. The views of the entrepreneur himself on the industry he belongs too may help the banks to understand the real risks being taken. Other Risks We discuss the importance of assessment of Other risks not covered before: technology risks, country risk, foreign exchange risk, and others. SWOT Analysis SWOT, standing for Strengths, Weaknesses, Opportunities and Threats is an optional analysis that Entrepreneurs may include in their documentation supporting the Loan Application. Typically, for loans of higher amounts or complicated structures, the SWOT provides a good summary to he credit analysts at the Banks and may simplify somewhat their "reading" of the application. Required Format and Documents to attach to the Request for Financing Some documents are standard for the Banks as attachments to requests for financing. In general however, do not fall for "form over substance". Credit Ratings are Credit Scoring Credit ratings and credit scoring are measures of risk associated with a Borrower and a loan attributed by banks. All information received is analysed and included in the banks' systems. These then generate a code that "quantifies" the risk incurred. How to properly structure a Loan Application. 13 lectures 01:04:16 A template with the structure of a Financing Request/Loan Application There is no such thing as a universal template. What I provide here is an alternative, a guidance to a structured one that in my view provides all the information the banks need. Identification of the Borrower The Bank must know from the very beginning to whom it will be lending the funds. Type of Loan requested and explanation of Credit Need There are many types of credit/loans. The Bank must know what type and main characteristics of the loan you are requesting. Different Types of Security and Related Considerations Security is one of the most important topics when requesting loans and have a direct impact on the credit scoring and risk analysis done by banks. It is important to understand the role security plays and the basic considerations around it, to be able to propose adequate collateral to the bank in the request for financing and then discuss it with bankers. TrackRecord/Experience/Industry Position Banks will look at how experienced your business is and what history of activity you have behind. Management of The Borrower Who owns and who manages the Borrower is a crucial information for Banks Historical Financial Statements It is crucial to present a full set of financial statements when requesting a business loan. Banks need to know about the company's financial performance and they make many conclusions from them about risks incurred with a certain Borrower. Business Plan/Projections Banks also need to know about projected/estimated results, particularly when you are requesting a loan above 12 months. Industry/Market Analysis Banks have certain knowledge and opinion about the several industries/sectors of activity. The views of the entrepreneur himself on the industry he belongs too may help the banks to understand the real risks being taken. Other Risks We discuss the importance of assessment of Other risks not covered before: technology risks, country risk, foreign exchange risk, and others. SWOT Analysis SWOT, standing for Strengths, Weaknesses, Opportunities and Threats is an optional analysis that Entrepreneurs may include in their documentation supporting the Loan Application. Typically, for loans of higher amounts or complicated structures, the SWOT provides a good summary to he credit analysts at the Banks and may simplify somewhat their "reading" of the application. Required Format and Documents to attach to the Request for Financing Some documents are standard for the Banks as attachments to requests for financing. In general however, do not fall for "form over substance". Credit Ratings are Credit Scoring Credit ratings and credit scoring are measures of risk associated with a Borrower and a loan attributed by banks. All information received is analysed and included in the banks' systems. These then generate a code that "quantifies" the risk incurred. A template with the structure of a Financing Request/Loan Application There is no such thing as a universal template. What I provide here is an alternative, a guidance to a structured one that in my view provides all the information the banks need. A template with the structure of a Financing Request/Loan Application There is no such thing as a universal template. What I provide here is an alternative, a guidance to a structured one that in my view provides all the information the banks need. A template with the structure of a Financing Request/Loan Application There is no such thing as a universal template. What I provide here is an alternative, a guidance to a structured one that in my view provides all the information the banks need. A template with the structure of a Financing Request/Loan Application There is no such thing as a universal template. What I provide here is an alternative, a guidance to a structured one that in my view provides all the information the banks need. There is no such thing as a universal template. What I provide here is an alternative, a guidance to a structured one that in my view provides all the information the banks need. There is no such thing as a universal template. What I provide here is an alternative, a guidance to a structured one that in my view provides all the information the banks need. Identification of the Borrower The Bank must know from the very beginning to whom it will be lending the funds. Identification of the Borrower The Bank must know from the very beginning to whom it will be lending the funds. Identification of the Borrower The Bank must know from the very beginning to whom it will be lending the funds. Identification of the Borrower The Bank must know from the very beginning to whom it will be lending the funds. The Bank must know from the very beginning to whom it will be lending the funds. The Bank must know from the very beginning to whom it will be lending the funds. Type of Loan requested and explanation of Credit Need There are many types of credit/loans. The Bank must know what type and main characteristics of the loan you are requesting. Type of Loan requested and explanation of Credit Need There are many types of credit/loans. The Bank must know what type and main characteristics of the loan you are requesting. Type of Loan requested and explanation of Credit Need There are many types of credit/loans. The Bank must know what type and main characteristics of the loan you are requesting. Type of Loan requested and explanation of Credit Need There are many types of credit/loans. The Bank must know what type and main characteristics of the loan you are requesting.There are many types of credit/loans. The Bank must know what type and main characteristics of the loan you are requesting.There are many types of credit/loans. The Bank must know what type and main characteristics of the loan you are requesting. Different Types of Security and Related Considerations Security is one of the most important topics when requesting loans and have a direct impact on the credit scoring and risk analysis done by banks. It is important to understand the role security plays and the basic considerations around it, to be able to propose adequate collateral to the bank in the request for financing and then discuss it with bankers g Other Risks We discuss the importance of assessment of Other risks not covered...