David SPARKS - The Quick Guide on Business Loans: What You Must Know Before Talking to a Bank

The Quick Guide On

What You Must Know Before Talking To A Bank

By David Sparks

All Rights Reserved Worldwide

First edition, 2013

Copyright David Sparks, 2013, All Rights Reserved.

You may not distribute this book in any way. You may not sell it, or reprint any part of it without written consent from the author.

Limits of liability and disclaimer of warranty

The author has used his best efforts in preparing this book. The author makes no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this book. The author disclaims any warranties (expressed or implied), merchantability, or fitness for any particular purpose. The author shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages.

As always, the advice of a competent legal, tax, accounting or other professional should be sought. The author does not warrant the performance, effectiveness or applicability of any sites listed in this book. All sites and links listed are for information purposes only and are not warranted for content, accuracy or any other implied or explicit purpose.

This book contains material protected under International and Federal Copyright Laws and Treaties. Any unauthorised reprint or use of this material is prohibited.

Publisher: Deeno Publishing, MEDA House, Fielden Road, Crowborough, East Sussex, TN6 1TP, UK.

Cover design by Ayd Instone, www.sunmakers.co.uk.

To businesses that have it all,
except the money

If you want to have a meaningful conversation about finance with your bank, you need to talk their language. Take the time out to read this book and youll be well equipped to have that conversation. A must-read for any business preparing its case for finance before meeting with their bank.

Julio de Quesada, Independent Financial Services Professional;
formerly Executive Vice President and Country Head, Citibank Mexico.

An excellent roadmap for any business on how to develop and maintain an empathic relationship with its bank.written in a style which is easy to understand and offers valuable insights into the mindset of lending institutions.

Eamonn Fitzgerald, Chief Executive,
Hermitage Medical Clinic,
Dublin, Ireland.

As a first time successful owner of an SME for three and a half years this book is like reading dj vu. A great reference guide on understanding how to analyse your business model, develop a persuasive case for finance and ensure success in securing funds for business growth in a new financial era.

Steve Satherley, Owner, S & K Liquor,
Wellington, New Zealand

If finance is not your thing, then this book is for you! In less than 90 minutes, youll be up to speed on what matters and whats needed to make a persuasive case for finance for your business. An excellent straight- talking read; I defy anyone to go through this book and not come away with a to do list that improves their business case for finance.

Joe Browne, Owner,
SRXGlobal, Sydney, Australia

I think we all know this stuff but never think about it from the banks perspective. We still deliver our business plans and wonder why banks dont seem to get it! A well written, informative guide to how the guys with the money think and what we as entrepreneurs need to focus on when looking for funding.

Ian Searle, Managing Director,
Talkis Limited, West Sussex, UK

Business is really a profession often requiring for its practice quite as much knowledge, and quite as much skill, as law and medicine; and requiring also the possession of money.

Walter Bagehot (1826 1877)

Times have changed. Bank finance is no longer readily available. It is now a critical constraint for many businesses today. Many have difficulty renewing their existing credit facilities whilst other businesses report they cannot get business credit. Financial commentators report that the availability of finance is not going to get better any time soon.

With finance being effectively rationed, a business must do all it can to place itself at the front of the queue. Businesses have to create and deliver persuasive and compelling sales pitches to their banks; pitches that are as persuasive and compelling as those they create for marketing their products and services. They must know what their banks want to hear and be able to present their case using language that bank managers understand.

Thats what this book is about. David Sparks takes the reader inside the mind of a commercial bank manager, revealing what every business must know before they sit down in front of their bank manager to negotiate new credit facilities or the renewal of existing credit facilities.

This book is much more than just another read on business finance; it is a practical and revealing guide for anyone in business to help create a strong case for finance today and secure a future for their business tomorrow.

Jonathan Jay
Founder & Chairman
The Nationwide Alliance of Business Owners
www.nabo.biz

You dont need me or anyone else to tell you that the availability of finance for small businesses has taken a sharp fall since the banking crisis in 2008. You know that already. And for those who do manage to get their hands on the finance that they need to start or stay in business, the cost of that finance is getting more expensive.

Unfortunately, for reasons I will not bore you with right now, total bank lending is notgoing to increase any time soon, in spite of politicians around the world pleading with the banks to do so. There will continue to be winners and losers when it comes to getting business finance for the foreseeable future.

The sad irony is that world economies today are more dependent than ever on the ability of businesses to survive and prosper. The future depends, more than ever, on the ingenuity and perseverance of private enterprise to create wealth and restore economic growth.

Helping business owners to grow their businesses is not only good for them; it is also good for the people they employ and good for the economic and social well being of society as a whole.

My guess, though, is that you are just too busy running your existing business to be thinking about how a bank decides if you get the finance or not.

This is precisely why Ive written this book: to share with you exactly what you must know about:

• how banks think,
• what banks want to hear, and
• the information that supports favourable lending decisions.

I cannot guarantee that you will actually get the finance you need for your business after reading this book. I am certain, though, that action you can take based on the information in the pages that follow will help you make a persuasive case for finance; one that, I hope, is successful and helps realise the dreams that you have for your business.

Lets jump straight in.

David Sparks

The temptation might be to say that its just fine if only the bank would lend the money you need to keep going. And if theyd just say yes, like they say they do in the commercials, you could be in and out of there in ten minutes flat. This approach may have worked when banks were falling over themselves to lend; its not working anymore.