Loan Scheduling and Development
For the purpose of starting a new venture or expansion of the current business, a person requires financial assistance. One of the most viable and secure means of arranging finance is through Banks. Thus when a proposed borrower approaches to the baker for aid, the banker needs to assess the feasibility of the proposal taking into consideration various aspects such as financial status and other information delivered to the banker for assessment. The borrower provides information in accordance to the true financial position of the business unit as well as requirement of the project.
One of the least understood concept is how to make an effective loan presentation to a lender. A borrower is often told to create a Business plan and to include various required documents. However, this generic approach may result in the loan request being turned down or simply rejection. Lender want to be assured that your business will repay the proposed loan and that there are sufficient assets to pay off the principle in case of default. Thus it is your task to provides the lender with these two assurance in a clear and concise format. Lender rejects loan request when they cannot understand the risk or the risk is greater than acceptable to them. An acceptable entrepreneur’s risk if often greater than an acceptable lender’s risk.
Following Points should be remembered while Loan Scheduling:-
- Choosing the Right Lender
- The Loan Presentation
- Table of Contents
- Cover Letter
- Visual Presentation
- Executive Summary
- The Collateral
- The Market and Marketing Plan
- Underwriting
- Recommendation
