Questions Borrowers Should Ask Themselves:  Being Prepared for Your Lender

What should you as a borrower do to be prepared in approaching a lender?  If you can respond to the 12 questions listed below and provide support for your answers, you will have gone a long way toward being adequately prepared.

1. How much money are you going to need?
2. What is the money going to be used for?
3. How will the loan affect your financial position?
4. How will you secure the loan?
5. How will you repay the loan?
6. When will the money be needed and when will be it repaid?
7. Are your projections reasonable and supported by documented historical information?
8. How will alternative possible outcomes affect your repayment ability?
9. How will you repay the loan if the first repayment plan fails?
10. How much can you afford to lose and still maintain a viable operation?
11. What risk management measures have been or are to be implemented?
12. What have been the trends in the business's key financial position and performance indicators?

Tips For The Borrower On How To Prepare for the Lender