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SET THE CONTEXT
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MARKET ANALYSIS AND BUSINESS POSITIONING
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DEVELOP YOUR SALES FORECAST
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DEVELOP YOUR OPERATIONAL AND COST PLAN
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DEVELOP YOUR CASH FLOW PROJECTIONS
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DETERMINE YOUR FINANCING STRATEGY
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INTERPRETING THE INCOME STATEMENT
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INTERPRETING THE BALANCE SHEET
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INTERPRETING THE CASH FLOW STATEMENT
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CONCLUSION
What Lenders Look for
Lenders typically ask the following questions:
- How much do you want?
- What’s it for?
- How will you generate profit to repay on time?
- Can they trust you?
- Do you have a good credit history?
- Do you manage your business well?
- What if you can’t repay on time?
- Is there sufficient collateral to repay the loan?
Relevant information which lenders usually require includes:
- Cash flow projection
- Income projection
- Balance sheet projection
- Sales forecast
- Cost plan
- Debt-to-equity ratio
- Other key ratios
- Market analysis
- Past records
- Scenario analysis
- Executive summary
- Concise, direct to the point
- Written last
- Introduce the business owner and the business
- Projected sales, profit and keys to success
- Peer review
Next
Exercise 6