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Meghan Kearns NATIONAL CITY BANK

Meghan Kearns NATIONAL CITY BANK. Small Business Finance Sources of Capital: Borrowing. What Banks Want to Know. How much money are you investing or have invested? How much money do you still need? How long do you need the money? What are you going to do with the money?

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Meghan Kearns NATIONAL CITY BANK

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  1. Meghan KearnsNATIONAL CITY BANK Small Business Finance Sources of Capital: Borrowing

  2. What Banks Want to Know • How much money are you investing or have invested? • How much money do you still need? • How long do you need the money? • What are you going to do with the money? • When and how will you repay the money? • What will you do if they don’t get the loan?

  3. How Does the Bank Decide to Make a Loan • Ability to repay the loan (Cash Flow) • Prior experience in the business (Character) • Ability to manage prior affairs and financial matters (Credit) • Ability to put money into the business (Capital) • Availability of personal assets and willingness to pledge them (Collateral)

  4. What to Bring to the Bank (Business Plan) • Details about what you are doing and overall plan • Description of business • Marketing assumptions and what makes you unique • Business financial information • Business Balance Sheet (prior three years) • Proforma Balance Sheet (with loan/equity proceeds) • Business Income Statement (tax returns and income report for prior three years) • Three year income and expense projections • Three Year Tax Returns from the Seller • Personal resume highlighting experience in this field • What are the source and use of project funds • Any special agreements such as Partnership Agreement, • Purchase Contracts, Building Lease, etc. • Personal Financial Information • Personal Financial Statement or Balance Sheet • Prior three years Personal Tax Returns

  5. What to Look for in a Bank(er) • Record of working with new and expanding businesses • Knowledge of Credit Enhancement Programs such as SBA • Willingness to meet in the most convenient place for the client • Desire to really know your business and discuss: • Money to Finance Growth and Acquisitions • Tools to manage cash flow • Services to reduce operating costs • Investments to grow wealth or increase financial security • Techniques to reduce risk • Methods to manage personal finances

  6. Credit – Understanding FICO • 35% - Payment History • 30% - Balances and total usage • 15% - Longevity of trades • 10% - New credit and inquires • 10% - Types of credit used

  7. Contact Information Meghan Kearns Small Business Officer National City Bank 773-252-7140 Office 773-252-7131 Fax

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