Financing the Small Business : A Complete Guide to Obtaining Bank Loans and All Other Types of Financing

by Sisson, Robert

• ISBN13: 9781580626811
• ISBN10: 1580626815
• Format: Paperback
• Copyright: 2002-06-01
• Publisher: Adams Media Corp

Summary

Everything an entrepreneur needs to finance a business!

Every day, thousands of businesses open their doors for the first time . . . and every day these entrepreneurs must find creative ways to raise money.

In Financing the Small Business, bank professional Robert Sisson shows business owners how to get the bank to open its vault. From approaching the right person at the bank to properly filling out applications, this is the one book business people must have to get lightning-fast cash flow.

Includes such information and insights as:

-- How to understand and prepare for the dynamics of the loan process

-- What banks look for in loan ventures

-- Choosing the loan that best suits your business

-- The "six Cs" of commercial lending

-- How to target the right bank for any kind of business

-- Looking beyond the bank for capital

Table of Contents

Foreword	ix
Banking the Small Business	1	(10)
The Changing Banking Industry	2	(2)
The Power of Business Credit	4	(7)
Understanding Banks	11	(14)
Popular Misconceptions About Banks	11	(2)
The Business of Banks	13	(6)
Types of Banks	19	(4)
Bank Mergers	23	(2)
How Banks Approve Loans	25	(14)
Loan Policies	27	(1)
Credit Scoring	27	(3)
Lines of Business Loan Approval Systems	30	(1)
Individual Loan Officer Authority	31	(2)
Loan Committees	33	(3)
Conclusion	36	(3)
Types of Loans	39	(18)
Short-Term Loans	39	(6)
Long-Term Loans	45	(4)
Letters of Credit	49	(2)
Other Types of Loans	51	(6)
The Six C's of Commercial Lending	57	(32)
Character	57	(4)
Cash Flow	61	(13)
Capital	74	(3)
Collateral	77	(8)
Capacity	85	(1)
Conditions	86	(3)
The Loan Proposal	89	(32)
Identification of Borrower and Loan Request	97	(3)
Sources and Uses of Finances	100	(2)
Cash Flow	102	(2)
Collateral	104	(4)
Summary	108	(3)
Attachments	111	(10)
Target the Right Bank for Your Business	121	(12)
The Shotgun Approach	121	(1)
The Power Referral	122	(1)
Personal Referrals	123	(1)
Business Referrals	124	(1)
Community Contacts	125	(1)
Prioritizing Targets	126	(1)
Prioritizing Banks	126	(4)
Profiling the Banker	130	(1)
Transaction Versus Relationship	131	(1)
Meeting the Banker	132	(1)
If the Bank Says Yes	133	(20)
The Commitment Letter	133	(4)
Documentation	137	(9)
Due Diligence Documentation	146	(7)
Your Banking Relationship	153	(16)
Negotiating with the Bank in Good Times	154	(3)
Negotiating with the Bank in Bad Times	157	(1)
When the Going Gets Tough	158	(6)
Loan Workout Situations	164	(5)
When the Bank Says No	169	(8)
Educate Yourself	169	(4)
Looking Outside the Box	173	(2)
Caveat Emptor	175	(2)
Loan Brokers and Financial Advisors	177	(6)
Loan Brokers	177	(3)
Financial Advisors	180	(3)
Your Own Pocket	183	(6)
Home Equity	184	(1)
Personal Savings and Investments	185	(1)
Insurance Policies	186	(1)
Other Assets	187	(2)
Friends and Family	189	(8)
The No-Money Assist	190	(1)
Cash Investments and Loans	191	(1)
Investment of Assets	192	(1)
How to Get Money from Friends and Family	193	(2)
Family Matters	195	(2)
The Government	197	(12)
The Federal Government	197	(8)
State and Local Governments	205	(4)
Nonbank Lenders	209	(6)
Savings and Loans Associations	209	(1)
Credit Unions	210	(1)
Commercial Finance Companies	211	(2)
Utility Companies	213	(1)
Where to Find Them	214	(1)
Seller Financing	215	(6)
Why Seller Financing?	215	(1)
Seller Preferences	216	(1)
Buyer Beware	217	(4)
Asset-Based Lenders	221	(6)
Equipment Loans	221	(3)
Leases	224	(2)
Factoring	226	(1)
Venture Capital and Initial Public Offerings	227	(6)
ACE-net	228	(1)
Angel Investors	228	(1)
Small Business Investment Companies (SBICs)	229	(1)
Business Investment and Development Companies	230	(1)
Initial Public Offerings (IPOs)	230	(1)
It's a Partnership	231	(2)
Suppliers and Customers	233	(4)
Suppliers	233	(1)
Customers	234	(3)
Employees	237	(6)
Informal Arrangements	237	(4)
Formal Arrangements	241	(2)
Cooperatives	243	(10)
The Asian Model	243	(4)
The American Model	247	(2)
Forming a Cooperative	249	(4)
Barter	253	(4)
Direct Bartering	253	(1)
Indirect Bartering and Barter Exchanges	254	(3)
Credit Cuds	257	(4)
Advantages	257	(2)
Disadvantages	259	(1)
Things to Keep in Mind	260	(1)
Staying out of the Box for Keeps	261	(4)
The Future of Banking	262	(1)
Technology	263	(1)
Economic Cycles	263	(2)
Glossary of Terms	265	(6)
Index	271