Tips
on Approaching Your Bank
It’s unwise to walk into a bank unable to answer some tough financial questions about your small business. Get these tips from SCORE on how to prepare for your banker before you ask for financing.
- Understand that your primary responsibility is the proper use of capital and that you are in business to make a profit.
- Test the economics of your product or service. Make sure that it is profitable and that the gross profit percent is in line with that of the industry.
- Know how you will finance your business. Visit lenders (banks) prior to seeking financing to gather information. Ask your lenders what they will want to see before you apply for a loan.
- Develop a personal financial evaluation. Determine your net worth and your annual, personal cash flow needs.
- Develop realistic financial forecasts for income statements, cash flow and balance sheets for three years. Forecast monthly for the first year.