How to Talk Banker Talk

Talking to a banker has never been easy. Sometimes it even seems like a trip to the Dentist or something. One thing to remember, though, is that bankers want you to come in and ask for loans. It’s how they make their living. But they do have a certain set of circumstances they are looking for that will help them decide if you are a safe risk for lending to.

You can help them by painting the kind of picture they want to see. Here are a few steps you can take to help ensure your banker sees want you want him to see.

Show your banker that your company owns some tangible assets such as real estate or other property. Even if you have weak cash flow or aren’t quite as creditworthy as other businesses. Many times hotels, brick and mortar retailers, restaurants and manufacturers will get a second look from banks, while companies such as IT providers that many times don’t have collateral won’t. When you add in strong sales plus collateral, you’ve got the best chance of landing a loan.

It also helps to be in an industry or field that is traditionally known for paying back its debts. Even with little collateral, data shows that consulting companies and professional, scientific and technical services companies are among the top industries most likely to pay back debts.

There really is no magic formula for getting a business loan. Make sure you have dotted all the i’s and crossed all of the t’s, and then make sure your banker has. Banks are under intense scrutiny from federal regulators, making them play by the book when it comes to measuring risk. This is why factors like industry norms may seem to count for more than the reality of your business’s facts and figures. The bottom line is, businesses are still getting bank loans and with the right business plan, you can, too!