Communication
Here are a few communication mistakes I have heard from financing seekers over the years. Do any of these sound familiar?
What you say to your lender and what he/she hears!:
When a lender hears: “My bank doesn’t understand my business”, he hears “My business is in deep trouble, I am in denial, and my bank is angry with my business’ performance”;
When a lender hears: “I want to explain a few things before giving you my financial statements”, he hears “My financials are lousy and there are many valid reasons that you probably won’t want to make me a loan, so don’t waste much time with me”;
When a lender hears: “It’s hard to do projections in my business”, he hears “I have no idea what my business model is and am operating on hope”’
When a lender hears: “I don’t want to guarantee my loan”, he hears “I don’t think my collateral is very good”.
Anyone have any others to add to this list? Add your comments, they may help someone some time!
June 21st, 2007 at 12:01 am
Rob,
Loved the statements and the interpetation by the banker. You are right on target. Especially the one where the business owner does not want to sign a personal guaranty.
Keep up the good work