Getting The Money Process - Bank - Document [PDF]

Zitiervorschau

This document will explain how to get funding from a bank. Meeting 1. The doc. Starts with the summary: Banks have money they want to give, You have the opportunity they want. Both of you have to believe in each other and see one another as partners in this transaction to do the deal. Banks want to give you the money, this is how they make money (as long as you pay them back) they need the security that you believe in your deal as if it means your life. You must convey the notion that you will pay them back at all costs without saying “ hey im going to pay you back at all costs’’ they have to feel “comorftable” Below are the key concepts to cover over 3 - 4 meetings with the banker/loan officer/ lender. Always open with: We are looking for a “Financial partner” or “Im looking to select a key financial partner” as well as “ I'm interviewing financial institutions to see who we can have a long term relationship with” In the conversation bring up one or two of your board of directors: Name Drop who is on your dream team. Do this with confidence just slip it in as you talk about Generalities Within the conversation of generalities of what you're going to make sure that you let them know that you will be talking to other “financial institutions” you are interviewing. Right after you make that statement (pause) lean forward and say do you have any referrals?

Remember they want to give you money and the more you make your deal look like the best deal in the world the more they are willing to give! You are in control, get them excited! The qualifying questions: 1. What is your personal lending limit - secured and unsecured. 2. After what amount of would we have to involve someone else? - Use this to find out if there is someone else and if there is let him know that you’d like to meet with him. You are there to make long term relationships after all and you want to make sure that everyone is a match. - Remember to try and stretch their comfort a little bit so they think in maximum terms 3. Have you ever turned down a deal like this, and how come?

(do not use the ‘’why?” the word why is accusatory and will get peoples guards up, they will think if I answer wrong I will Lose them! So they may not tell you everything you need to know. Ask this with a soft and casual tone. They will speak! 4. How’s the minimum rate of return you lend on? 5. What would constitute success for you and the bank? - Find out how they see success then make sure you mention it in a later interview They may ask for a business plan. - A business plan is at best a guess and at worst a lie! If they insist on having one ask “what do you want to see in the plan? - charts , pictures, graphs - Type of paper - Color of paper - Hard copy or email - After stating the things above ask for a business plan that was approved! “ always say thank you! To them for providing this” remember they want to give you the loan if you have a hot deal, and for some lenders this may be a make or break. Why? They may need to show it to a few people in the bank and say “ hey I reviewed their plan and it's a good one!” At the end of the first meeting make sure that you ask if there is any conflict of interests in any way. Your meeting should not take more than 15 - 30 min. The first meeting could be at their branch but if you have it at their branch DO NOT BOOK ANOTHER MEETING BEFORE YOU LEAVE! YOU TELL THEM YOU WILL LET YOUR ASSISTANT GET A HOLD OF THEM AFTER YOUR DONE DOING INTERVIEWS. Meeting 2 That way you can direct them to lunch or your lawyers office if need be. Second meeting should be 2 weeks or more later. If you need money like you need blood in your veins, you're already dead, banks can SMELL desperation. Just think of the high school girl you liked and stocked.. How well did that go? When the second meeting is about to be booked book it in week 2 and send over your executive summary. This time you can meet where you like. If you did not bring a person with you the first time, this time you do bring a person. If you do not have confidence in them asking questions you make sure that they keep their mouths shut. Let them be an assistant. You will have them meet with directors next meeting.

Opening ask if they have any questions about the Executive Summary, ( why ask them first? He who asks the question is in control of the conversation let them ask all the questions first so then you have the freedom to be in control of the convo . This is the meeting where you will explain that you liked the lender and that your interested in finding out what he/she can do for you and your team, organization. We are talking about discount rates on bank accounts, less fees, any promotions that come up letting us know, talking to higher ups to get them creditcards ext. At this point you have to compare and talk about what other banks have, (do your research and find it before you go, or talk about another bank you went to, and what they offer)

Bring Concepts not Paperwork. Make sure that they understand that there is no losing if they bet on you. You have a strong team, you have been placed on this earth to do exactly what your doing. This is where you ask them what they need from you to have working capital, let them know that you’d like to grow with them and that your plans will need working capital to grow, but im not in a rush! They will ask “how much do you need?” give them a ballpark and tell them that “you and one of your directors are going to review the numbers again just to make sure. ( look at their reactions) if you say I need 250 - 300k and their eyes grow wide and they say “well ill have to involve someone else” that's when you now know who to speak to and spend your time on. If they seem calm about it like its no issue, ask them what type of documents they would need? They will mostlikley need (a full report of why you need that money) This is where you set up the next meeting. Let them know that you will get it to them after the discussion with one of your directors and then your assistant will give them a call. 3-4-5 meeting These meetings you will have with a director, at least 1-2 times

This is where you hash out terms, make sure that you never allow a doubt to be shed from your lips or anyone else, not in an email not in person not an IOTA of a doubt. The bankers have to think that you were sent from heaven to meet with them and they will see their money. Its also important for them to like you, so if there is any challenges they will be willing to help Borrow big bucks cuz when you have big problems you have partners.