Business Owner's Manual

Meeting with the Lender

 

The meeting is your opportunity to make a positive impression on the lender.

Expect the lender to want to meet with the whole management team. No matter how good the idea, inexperienced management causes concern for a lender. If your experience is in the technical side of the business, be sure to have a key employee or advisor who can support you on the sales/ financial side and be sure to bring this individual to the meeting.

Prepare for the meeting by reviewing your business plan and financial statements and by anticipating the questions that will come up. You should be able to explain each part of your plan and answer questions such as these:

• How much do you know about the industry and current trends? Who do you know in the industry?
  
  
• How do you plan to minimize risk?
  
  
• How would you handle a delay by the Buildings Department in approving your plans for renovation and expansion (or any other situation that would adversely affect the business)?
  
  
• What are the assumptions behind your sales forecasts, margins, etc.?

Most of all be positive and enthusiastic. Lenders are impressed by entrepreneurs who exhibit a real passion for their project. Whatever you do, let that passion come through.