Thursday, November 6, 2008

How To Get A Bank Loan With Ease ?

If you are a first-time entrepreneur and you want to start your own business you are almost undoubtedly going to need a bank loan. Here are some tips on getting one. You must realize that because you dont have a business ownership track record securing a bank loan will be an uphill battle. That doesnt mean you shouldnt try but dont expect the process to be a cake walk. It wont be. Any bank will tell you that a small business loan has risk factors and that costs of servicing these smaller accounts are primarily responsible for their disinterest in offering a bank loan to an aspiring entrepreneur.Your first time business bank loan can happen, however, and here are some ideas on how to increase your chances of getting that small business bank loan. The first thing to remember is to think positive and assume you are entering that bank from a position of strength. Keep in mind that you are customer, not a beggar. Banks sell loans, you buy. For the most part those banks want and need your loan business and the loan officers are tasked with getting your business. While it certainly is always a good idea to start with the bank that is familiar with you as a person - the one with which youve done business regularly - it is also important that you seek a bank that has underwritten loans for others in your industry and stays familiar with your industry. Look for banks that actively finance small businesses.There are also banks whose specialty is government programs - participation by the government in funding or guaranteeing loans. Information on the latter would be readily available at your local Small Business Development Center of the Small Business Administration (SBA.)Keep in mind, however, that no matter how dedicated to small business financing, the bank is going to ask for some fairly hefty collateral for your start up business. Be prepared to prove to that bank loan officer that lending you and your new company money is not a high risk proposition.Complete your loan application prior to arrival if you can, bring copies of three years of financial statements such as cash flow, testimonials from satisfied and returning customers, your business plan and a cover letter that spells out why you need the money and how your business is now thriving and will only do better with that bank loan funding.If you are fully prepared to ask for that bank loan, no question should surprise you. While you should have the details in your business plan already, be prepared to talk about how much money your firm will need and for how long, and what the bank loan funding will be used for. You'll need to talk about whether you are going to buy new equipment, supplies and assets, pay off some old bills, or spend it on operating expenses. Youll also need to show a well-thought-out and achievable repayment plan, with a payment schedule.Two important points that should be made about your face to face bank loan interview are often discounted. The first is that you should dress professionally to meet the loan officer. Your garb should be that you would wear to meet a client. The other is that your documents should all be neat, easy to read, clear and clean.



Should World Bank Loans Be Made to Middle Income Countries Such as China?
A controversy is brewing over the question of whether World Bank loans should be made to middle income countries such as China that have international capital market access. Of course part of this controversy is pure sheer U.S. mercantilistic protectionism. National security hawks that were instrumental in sabotaging the CNOOC bid for Unocal based on far fetched national security arguments are now taking aim at World Bank loans to China making the really convoluted, concocted and incorrect argument that World Bank loans allow China to then buy U.S. assets galore and/or spend more on its military build-up.

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