Prepare to Get Bank Financing: Aka Banker Seduction

The biggest handicap for utmost people allowing about buying habituated outfit for resale is" Where am I going to get the plutocrat?" In my book, Secrets of Buying and Dealing habituated outfit, I talk about several ways to get backing, but the thing of every dealer should be to have a large revolving line of credit at a friendly bank. This is the cheapest plutocrat available. Biz Dispatch Taking in investors or adopting plutocrat from high interest finance companies is nearly always the only way to start, but in order to maximize profit, we need banks. The good news is that banks need us! We do not frequently talk about the problems that the bankers have. But those bankers who feel so cold and tight with plutocrat are really under a lot of pressure from their heads to write further good loans. It took me numerous times to understand the fact that loan officers must go out and" vend" loans. This is the secret If you appear to need plutocrat, they will noway agree to advance you any. So how does one move the banker to grant a nice fat loan at a low interest rate? We get that loan by fulfilling the banker's requirements. When we do this, he'll come to us, offering us a loan. The Banker's Needs 1. The banker must feel that you know what you're doing. The loan officer needs to understand your business. He wants to know if you're a good driver and worth the threat. Can you run your business so that you earn a regular profit? 2. Loan officers love plans. A well written plan is commodity that he can show his board, and they can all subscribe off on it. This spreads their threat( another need) among the group. 3. The bank needs a track record. Nothing is better than a series of well executed operations leading to a steady profit. The big word then's" record". You must have a written record. Telling your track record to the loan officer is better than nothing, but a well proved deal showing the details and charges is infectious. A Plan of Action Make an appointment with a loan officer. Go to the banker's office with a plan of action including projected cash requirements and time lines. Have a written plan of how you'll find a piece of outfit, how you'll negotiate to buy it and under what internal guidelines. And also you must show how you'll vend the piece. Include projected profit. Leave him a dupe of your plan and go down. Don't ask for a loan. Every week give the loan officer a call and let him know how your deal is progressing. After you have vended the piece and settled all accounts, go back to the loan officer and give him a written summary. Be assured that latterly he'll compare it to your plan. Tell him how you crushed obstacles; how you modified your plan due to circumstances, and let him know what you plan to do next. Don't ask him for a loan. This is important. He must suppose that you do not really need him. It's stylish if you do this at further than one bank. Some banks just do not loan on habituated outfit, some might have a full portfolio. Do not place all your plutocrat on one steed. Just like soap, cleaner, wash, repeat. After your third or fourth successful deal, the loan officer will start prodding you to open a line of credit at his bank. Guaranteed. Flash back, have a well written, step by step plan for each deal, and present it to him before the action takes place so that he knows that you aren't cheating and writing an" after action report". This sounds like a lot of work, and it is. But after you have given thousands of bones in profit down to investors, you'll see that banker temptation is worth the trouble.