Business
Since a bank is still a business, it has to follow specific rules and regulations. So when it comes to loan approvals, one must be prepared to abide by the required loan package. Bob Roark is joined by https://www.linkedin.com/in/robinjroberts (Robin Roberts), CEO Of https://ppnb.com/ (Pikes Peak National Bank), to discuss what constitutes such a package and how business plans differ depending on your scope and reach. They also talk about why banks favor those mitigating risks and how banking changed a lot over the years because of politics and culture. --- Watch the episode https://youtu.be/ESw6FO7SN2w (here) Robin Roberts On Putting Together A Loan Package Have you ever wondered why banks sometimes do things that are not quite clear? In this series, we have Robin Roberts. She is the CEO of https://www.ppnb.com/ (Pikes Peak National Bank). She’s here to demystify some of those things. We’re going to talk a little bit in this short episode on the best practices to improve your odds and getting that loan that you’ve lived with for loan success. Enjoy it. --- I’m the business owner and I’ve done a good job. I have a reasonably good relationship with my bank. We have talked about this in some other series of things not to do. In the things of to, I want to take it and do a strategic acquisition for my business. I want to put together a loan package, present it to the bank, and do everything that’s within common practices to increase the out-of-the-bank gone. I understand what you are trying to do. I can see the numbers, we are willing to take in, and be a business partner with you in this note. What can they do? I have with me, Robin Roberts. She’s the CEO of https://www.ppnb.com/ (Pikes Peak National Bank). More of our series of things you didn’t know about banking but wish you did. [caption id="attachment_5877" align="aligncenter" width="600"] Loan Package: The better prepared you are with this information, the faster the loan decision will be made, and you can get to whatever goal you’re after.[/caption] It depends on the type of loan that you are wanting. There are some things in your loan package. They are always going to have to be there. The better prepared you are with all of this information, the faster the loan decision is going to be made and the faster you can get to whatever goal it is that you are after. If you are doing anything new, starting a new business, adding a second product line, buying someone else’s business, or expanding and opening another location, you need to have a business plan. Now, it doesn’t have to be 500 pages. The bank is not looking for you to do something that is 500 pages. If you are an existing business, you are opening a second location or you are adding to an existing product line, the business plan is a validation of your business model. If you are a startup, you are writing a business plan to validate that the product or service that you are going to provide is needed. If you are already in business and you are generating revenue, that question is already answered. Somebody needs your product or service and you are generating revenue so you already exist. Less work has to be done on validating your business model and more work has to be done on, “Here’s how we are going to pay for the second location.” More financial projections, more talk about who the management team is going to be, what your supply chains are, and how you are going to support the new product, service, second location or whatever. [bctt tweet="If you’re thinking about doing something big, get your tax returns filed by the deadline and don’t extend to them." via="no"] A business plan with projections having that done before you go to the bank is important, it tells the bank what you are wanting to do, and why you think that you can pay the loan back given the revenues that are generated by whatever it is that you are going to do.A business plan is...