The newsLINK Group - Get Credit By Thinking Like a Banker

Editorial Library Category: General Business Topics: Credit Title: Get Credit by Thinking Like a Banker Author: newsLINK Staff Synopsis: As a business owner, you know how critical it is to be able to get the money you need when you need it. To do that, all you have to do is think like a banker, and then prepare your case accordingly. Editorial: Get Credit by Thinking Like a Banker 4064 South Highland Drive, Millcreek, Utah 84124 │ │ (v) 801.676.9722 │ (tf) 855.747.4003 │ (f) 801.742.5803 Editorial Library | © The newsLINK Group LLC 2 those items as collateral, they are asking you whether you are sure enough about wanting the loan to be willing to back it up with what you already own. Selling small things, like office furniture or computers, won’t go very far to pay off a debt. Secondhand goods usually aren’t worth all that much. When a banker talks about collateral, then, the term usually means expensive business assets such as stocks, bonds, and heavy machinery. It can also include personal assets: your home, your car, and maybe expensive items such as jewelry. Being willing to put up collateral tells bankers you are serious enough about a loan to risk losing what you own if you can’t pay the loan back. Conditions Bankers want to know what you will do with the money you are loaned, and they also want to know what is going on in the overall economy and in your industry. For example, the great recession was not a great time for banks to give construction companies the money needed to build malls and shopping centers. If you plan to spend the money on something like new equipment, assets, or inventory, then bankers are more likely to approve a loan than they would be to fund expansion into a risky new market. Many banks require you to use business loans to do one of two things: decrease expenses or increase your income. Character Bankers may not know much about you, but they do have some important indicators to help them judge your personal character: your education, your work history, and your credit history can all be informative. Someone with a medical degree, impeccable working credentials, and a high credit rating will have a much easier time getting a loan than someone without them. That doesn’t mean you can’t get a loan, of course, but you do need to help the bankers who are deciding whether to loan you money feel that they are making a wise choice. Sources: analysis.asp 3810AA2EdOg Word Count: 1,021 Copyscape Clear Date: 12.15.2017